Intel, a U.S. semiconductor company, is reportedly considering selling its programmable chip division, which is facing the biggest crisis in its history due to deteriorating performance. According to Reuters on the 1st (local time), Intel is considering selling its programmable chip unit, one of its business units. The business division was created by Intel’s acquisition and merger of semiconductor chip producer Altera in 2015 and is in charge of customizing semiconductor chips for various purposes. Intel announced in October last year that it would seek an initial public offering (IPO) by separating the division as an independent corporation.
“Intel has begun considering selling it completely to other semiconductor companies instead of the IPO of the division,” Reuters said, citing sources.
Earlier, Bloomberg quoted unnamed sources on the 29th of last month that Intel is discussing various restructuring plans with investment banks Morgan Stanley and Goldman Sachs. Bloomberg said Intel is reviewing various measures, including product design, division of foundry business, and disposal of manufacturing facility expansion projects.
Reuters said the restructuring plan, which Intel’s management is scheduled to announce at a board meeting in the middle of this month, did not include a plan to sell its foundry division. However, Reuters explained that “Intel’s management’s restructuring plan has not yet been finalized,” adding that “it could be changed before the board meeting.”
Intel reported lower-than-market expectations for the second quarter. The company faced the biggest crisis in its history as it forecast a net loss in the third quarter. As a result, Intel’s stock price plunged 53 percent this year alone.
In response, Intel announced a restructuring aimed at saving $10 billion in costs, including 15% of its employees and a more than 20% reduction in annual capital expenditure.
EJ SONG
US ASIA JOURNAL
