Intel considers splitting off foundry business, scrapping factory plans- Bloomberg #NewsUnitedStates

Investing.com– Intel Corporation (NASDAQ:INTC) shares rose 8% Friday after it was reported the company is considering options to weather a historic slump, which include potentially splitting off its foundry business and scrapping plans for new factories, Bloomberg reported on Thursday.

The chipmaker is in talks with investment bankers over potential options and has met with Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS) over a path forward, Bloomberg reported, citing people with knowledge of the matter.

Intel had earlier in August suspended its dividend and slashed about 15% of its workforce as it struggled to catch up with rivals in the foundry space, chiefly Taiwan’s TSMC (NYSE:TSM).

Once the world’s leading chipmaker, Intel fell on hard times in the 2000’s, amid increased competition from rivals such as Advanced Micro Devices Inc (NASDAQ:AMD), and as it struggled to keep pace with demands from the smartphone and mobile computing industry.

Apple Inc’s (NASDAQ:AAPL) decision to develop its own silicon and stop using Intel chips was also a major blow to the chipmaker.

Intel’s challenges came to a head in recent years, with NVIDIA Corporation’s (NASDAQ:NVDA) dominance in artificial intelligence further cutting Intel’s sales.

The Bloomberg report showed that Intel was now considering separating its product design and foundry business, while also scrapping plans for expansion as it seeks to streamline its operations.

The company could not be immediately reached for comment.

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