Activist investor demanded that Intel immediately change
Intel, under the leadership of Bob Swan, is currently very serious internally and externally. Intel’s main chip business is slow and has fallen behind its competitors.
For example, at present, manufacturers such as AMD have transitioned to 7nm or even 5nm, while Intel is still struggling at 14nm and transitioning to 10nm.
More external partners began to abandon Intel, causing its stock price to continue to fall. For example, Apple must develop its own chips to completely replace Intel chip products.
Even Microsoft is preparing to develop its own processor products to replace Intel, and Microsoft confirmed that the company does have this plan to use self-developed chips for cloud computing.
Under the circumstance that Intel’s stock price continues to fall, radical investors are also putting pressure on Intel. These investors believe that Intel’s current strategy has gone wrong.
In the statement, activist investors demanded that Intel immediately evaluate strategic alternatives. Failure to immediately make changes may threaten Intel’s semiconductor leadership.
According to the media reports, an activist investor has asked Intel to consider separating its chip design and production business, that is, separating chip design from its semiconductor manufacturers.
Then Intel can cooperate with companies such as Apple, Microsoft, and Amazon to help these companies OEM chips to seize the market from TSMC.
“Without immediate change at Intel, we fear that America’s access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more,” the letter said.
Investors also mentioned that Intel’s current internal human resource management is very poor, and many talented chip design engineers have left the company because of this situation.
This is indeed the case. At present, Intel does have many top chip engineers who have jumped to AMD and Apple, and other well-known companies in the industry to continue research and development of semiconductors.
Via: Investopedia
