Thurrott.com reports how Intel is considering a potential breakup of its chip design and foundry businesses due to serious financial struggles, with CEO Pat Gelsinger exploring various options to present to the board. The company has faced significant challenges in 2024, including a 60% drop in stock value and significant layoffs. While immediate changes are not expected, Intel may implement conservative cost-cutting measures that could hinder innovation, leading to speculation that separating the foundry business may become necessary.
Why do we care?
Intel is really struggling. While I don’t necessarily see this as critical to daily operations of IT services organizations, it should be a contributing factor to your strategy planning with customers. We’re pending a big upgrade cycle for hardware with the wave of AI-enabled PCs. Will intel be a participant? I’m not betting on it.