What's next for Intel: Split, sell, or shut down the fabs?

Intel faces options: Split, sell, or shut down its fabs after CEO Gelsinger's exit.

: Intel's CEO Pat Gelsinger has retired amidst pressure to restructure. The company, struggling with its semiconductor fabs, faces options of splitting, selling, or potentially shutting down manufacturing. Interim co-CEO MJ Holthaus emphasizes a product-centric approach while Intel seeks new leadership.

Intel, after reporting a challenging June quarter, now sees the retirement of CEO Pat Gelsinger amidst growing pressure from stakeholders. Gelsinger had sustained a strategy to keep the product and foundry sides integrated, but ongoing issues and pressure have raised the need for fresh leadership and direction.

Interim co-CEO Michelle Johnston Holthaus has been appointed, with a strong endorsement for focusing on the product group. The Intel Board, lacking a current strategy, hints at potentially finding a CEO who could push for a company split, seemingly prioritizing product development over manufacturing and the foundry business.

The company's future lies in few viable options—maintain a product focus, split the company, sell to an entity like Broadcom, or cease its fabs. The challenges remain formidable, requiring significant capital, and present complex scenarios, with the potential of a future where fabs might eventually shut down if no effective strategic path is taken.

Intel semiconductorFabs