San Francisco — Activist investor Daniel Loeb wants Intel to consider splitting its huge chip manufacturing operations from its chip design and development business, but analysts say doing so could weaken both businesses unless the firm can form a joint venture.
But Intel has failed to stay at the cutting edge of manufacturing technology in recent years, allowing rivals, including Nvidia and Advanced Micro Devices — both of which outsource chipmaking — to gain share in key markets such as PCs and data centre chips. But with shares down nearly 20% this year, Loeb’s Third Point is demanding more dramatic measures. It sent a letter to Intel’s board asking it to retain an investment adviser to evaluate strategic alternatives, including whether it should remain an integrated device manufacturer.
Chip factories are only profitable when run at full capacity. Intel has tried to attract outside clients before with little success. And though rival chip factories are struggling to meet demand this year, chip designers must commit to a factory 18 to 24 months ahead of production, meaning it would take the new company time to win new clients.
AMD signed such an agreement with its former factories when it spun them off in the mid-2000s, which at times prevented it from pursuing advanced technologies as fast as rivals such as Nvidia did.
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Activist investor wants Intel to split its chip businessFor more than 50 years, the chipmaker has operated in the same way, failing to stay at the cutting edge of the industry
La source: BDliveSA - 🏆 12. / 63 Lire la suite »
Activist investor wants Intel to split its chip businessFor more than 50 years, the chipmaker has operated in the same way, failing to stay at the cutting edge of the industry
La source: BDliveSA - 🏆 12. / 63 Lire la suite »