endgadget Intel separating foundry business from the main company

[UltraMega]

Quote

Intel is turning its foundry business, which manufactures chips for other companies, into an independent subsidiary. The company has revealed its plan in a note to employees from its CEO Pat Gelsinger, published over a month after Intel disclosed that it's cutting 15 percent of its workforce. Intel is laying off more than 15,000 people as part of its $10 billion cost-reduction plan to regain financial stability following a second-quarter net loss of $1.6 billion. Gelsinger explained in his new memo that turning the foundry into a subsidiary "will unlock important benefits," particularly the ability to evaluate and take external funding directly. 

 

Gelsinger said that there will be no changes to the foundry's leadership, but the subsidiary will establish its own operating board with independent directors to govern it. According to CNBC, Intel is even considering making the foundry a separate publicly traded company. Intel is in the midst of modernizing its existing fabs and building new ones for its foundry business, which is costing the company billions of dollars, in an effort to catch up to its chipmaking rivals like TSMC and Samsung. The company has reportedly spent around $25 billion a year on its foundry business over the past two years, but that has yet to translate into profit. 

https://www.msn.com/en-us/money/companies/intel-is-separating-its-ailing-foundry-business-from-the-main-company/ar-AA1qHFwB?ocid=BingNewsSerp&PC=EMMX01

 

 

Is two struggling businesses better than one?

[schuck6566]

17 hours ago, UltraMega said:

https://www.msn.com/en-us/money/companies/intel-is-separating-its-ailing-foundry-business-from-the-main-company/ar-AA1qHFwB?ocid=BingNewsSerp&PC=EMMX01

 

 

Is two struggling businesses better than one?

If 1 struggles to the point it becomes an anchor pulling the company down, then yes,because the anchor can then be cut loose and the remaining company still has a chance to survive.

 

[schuck6566]

 

[Slaughtahouse]

6 hours ago, schuck6566 said:

 

 

My kind of content! Thanks