Intel Weighs Options, Including Foundry Split To Cut Losses

Intel Corp. is working with investment bankers to help navigate the most difficult period in its 56-year history, according to people familiar with the matter, Dinesh Nair, Ian King, and Ryan Gould reported for Bloomberg News.

Intel shares have declined 60% this year. I Photo: Intel Facebook

The company is discussing various scenarios, including a split of its product-design and manufacturing businesses, as well as which factory projects might potentially be scrapped, said the people, who asked not to be identified because the deliberations are private.

Morgan Stanley and Goldman Sachs Group Inc., Intel’s longtime bankers, have been providing advice on the possibilities, which could also include potential mergers and acquisitions (M&A), the people said.

The discussions have only grown more urgent since the Santa Clara, California-based company delivered a grim earnings report this month, which sent the shares plunging to their lowest level since 2013.

The various options are expected to be presented during a board meeting in September, the people said.

Intel shares rose 1.9% to $20.51 in early trading on Friday before markets opened in New York. They have declined 60% this year, compared with a 20% gain for the Philadelphia Stock Exchange Semiconductor Index, a chip-industry benchmark.