230 Billion Wafers, Stop!

Intel is one of the most difficult times in history.To cope with this challenge,CEO Pat Kissinger and his executive team plan to submit a comprehensive re -planning plan at the board meeting in mid -September.The plan is designed to peel off unnecessary businesses and adjust capital expenditure to revive the fate of this chip manufacturer that once dominated.

Dipping off non -core business

According to people familiar with the matter, Intel plans to sell the programming chip departmentALTERA's business to reduce overall costs.Altera was acquired by Intel for $ 16.7 billion in 2015. Although Intel had previously split it into a wholly -owned subsidiary and plans to sell some shares in the first public offering (IPO) in the future, it is currently considering that it will be considering that it will be considered.It is sold to other chip manufacturers.Marvell is considered one of the potential buyers.

In addition to peeling off non -core business, Intel also plans to significantly adjust capital expenditure.According to sources, the proposal proposed by Kissinger and other executives may include suspension orCompletely stop in GermanyFactory construction projects of US $ 32 billion (about 227.539 billion yuan).In the second quarter financial report released by Intel in August, Intel has stated that it is planned to reduce capital expenditure to US $ 21.5 billion by 2025, a 17%decrease from this year.This measure aims to deal with the company's current financial difficulties.

In order to ensure the feasibility of the plan, Intel also hired Morgan Stanley and Goldman Sachs to provide suggestions to the board of directors.The two investment banks will help the board of directors to evaluate Intel's sales and business that need to be retained.Although there is no request for bidding for the product department at present, once the board of directors approve the plan, this process is likely to begin quickly.

The future of foundry business

Intel has separated its foundry business from the design business, and has reported it alone since the first quarter of this yearFinancial performance.The company has established a firewall between the design and manufacturing business to ensure that the potential customers of the design department cannot obtain the technical confidentiality of customers using the Intel foundry manufacturing chip.Although the current proposal has not included split InteHe also sold its contract manufacturing business to buyers such as TSMC, but the changes around the manufacturing business are still discussing and may change before the board meeting.

Intel is currently facing great pressure from competitors such as Nvidia.Nvidia relied onThe dominant position of the AI chip market has reached US $ 3 trillion, and Intel's market value has fallen to less than $ 100 billion after the second quarter revenue report released in August.In order to cope with this challenge, Intel is taking a series of measures, including the suspension of 15%of the company's dividend payment and layoffs to save $ 10 billion in costs.

Intel's business in Israel is also being adjusted sharply.According to reports, Intel has notified thousands of employees to cancel the car rental plan. This measure is expected to save the company$ 3.3 million.This is a wider range of cost reduction measuresPart of it aims to reduce the number of layoffs in Israel.Intel has an appointment in Israel11,700 employees, of which 7800 were engaged in development and 3,900 were engaged in production.

The key decisions of the board of directors

The board meeting in mid -September is essential for Intel.The board of directors will determine which business of Intel will retain and which businesses will be abandoned.This decision will profoundly affect the company's future development direction.Kissinger said that the company is seriously treating investors' opinions and focusing on the second stage of the company's revival plan.

Intel's future is full of uncertainty, but the company's senior management is actively taking measures to deal with the challenges.By stripping non -core business, adjusting capital expenditures, and internal and external adjustments, Intel hopes to regain the foothold in fierce market competition.The key decisions of the board of directors will lay the foundation for the company's future development. Whether Intel can revive the strong style is worth seeing.