Deep in the most difficult situation in 56 years! Splitting, financing, mergers and acquisitions, Intel seeks "self-rescue"

Chip giant Intel is facing unprecedented challenges.

According to Bloomberg, Intel is seeking urgent assistance from investment bankers to help it through the most difficult period in the company's 56-year history.

The sources revealed that the company is discussing various options, including splitting its product design and manufacturing business, cutting factory investment projects, etc., in an attempt to reverse the decline. Morgan Stanley and Goldman Sachs, long-term partners of Intel, are providing comprehensive strategic advice, including potential mergers and acquisitions.

This may be the most significant strategic adjustment for Intel since its founding. Currently valued at $86 billion, Intel has fallen out of the top ten chip manufacturers globally and has become the second worst-performing company in the Philadelphia Semiconductor Index, in stark contrast to Nvidia. By 2024, Nvidia's revenue is expected to be twice that of Intel.

Major Strategic Adjustment, Foundry Business May Be Sold or Split

Surprisingly, Intel may sell or split its wafer foundry business, marking a significant adjustment in CEO Pat Gelsinger's strategy.

Gelsinger once viewed the foundry business as key to restoring Intel's position among chip manufacturers and hoped it would eventually compete with TSMC.

However, sources say Intel is not taking significant action at the moment, and discussions are still in the early stages. Before making more significant decisions, Intel may take some more conservative measures, such as delaying some expansion projects. The company has reached financing agreements with Brookfield Infrastructure Partners and Apollo Global Management. The plan is expected to be presented at the September board meeting.

Last week, director Chen Liwu announced his resignation, which is a further blow to the company at a critical time of revival. Tan has rich experience in the semiconductor industry, and his departure will undoubtedly have a negative impact on the company's future development.

Earlier this month, Intel released dismal Q2 earnings data, with revenue reverting to the mid-2010s. The company also announced a massive layoff of 15% of its employees and a complete suspension of dividend payments.

Can Intel Turn the Tide?

Once a trendsetter, Intel is gradually being left behind by the times.

Intel's misjudgment of the future has caused it to miss opportunities in emerging areas such as mobile internet and AI. Overreliance on x86 architecture has made it passive in the face of technological change.

Analyst Doug OLaughlin believes that Intel has missed the boat on the mobile platform and DCAI, and is now a "walking dead."

Over the past year, Intel's earnings per share and earnings per share have plummeted by 34% and 54% respectively, with the company's stock price hitting its lowest level since 2013, down nearly 58% year-to-date.

![](https://wpimg-wscn.awtmt.com/d42e0ef4-3cf4-4cb8-8964-0ae9e4fd6619.png? Some analysts believe that Intel needs two products to succeed in the next 12 months: Lunar/Panther Lake and Gaudi 3.

Lunar Lake and Panther Lake are key products for the client business, accelerating AI performance and significantly improving graphics performance for consumer and commercial laptops. Panther Lake is planned to be released in the second half of 2025, with company executives stating that it will be "a processor better than AMD products in terms of performance and energy efficiency."

Market Watch columnist Ryan Shrout stated:

However, if Intel's leadership fails to develop a cohesive sales and marketing strategy for the latest two products, Intel may not have much time left.

Despite recent poor performance, Trefis expects improvement in Intel's future business, with revenue expected to reach $59 billion in the 2024 fiscal year and adjusted earnings per share to reach $1.34