Troubled chipmaker Intel is gearing up for some drastic moves in order to stop losses and improve its stock. According to a recent report by Bloomberg, the company is considering splitting its product design and manufacturing business.
Reportedly, Intel is currently working with several investment banks in order to decide what the best move forward is. Splitting product design and manufacturing into separate entities has been floated as one of the possible options while selling its foundry business is also an option. Additionally, the company is reviewing its future projects, and there is a real possibility that some of them end up being scrapped.
Sources who talked with Bloomberg point out that the process is still in the early stages, and major moves shouldn’t be expected to take place anytime soon. Industry insiders also add that selling or splitting its two businesses is a last resort move for Intel and that it is highly unlikely it will end up taking place.
While being part of the same company, Intel Foundry, which manufactures chips for other companies, has been operating with a large autonomy. So much so that Intel has occasionally turned to Taiwan Semiconductor Manufacturing Co. to bake some of its chips.
Intel has been struggling to keep up with the changing market that focuses on artificial intelligence. This had a significant impact on the company’s stock, which has been around 55% down year-to-date. However, following Bloomberg’s report, the company’s shares saw an uptick of 9% on Friday.