As we’ve seen recently, Intel is in a financial mess, and their latest financial results are anything but encouraging. The company recorded a loss of $1.61 billion. Obviously, Intel Foundry isn’t the most profitable, and the Raptor Lake story hasn’t helped. In short, the company is in talks with investment funds to turn things around!
Intel Foundry in the firing line?
In a Bloomberg article, we learn that the Intel Foundry division would be particularly expensive and not profitable at all. Currently, the division’s operating margin remains negative at 65.5%. The aim here is to turn things around and make money again. To this end, we’ve already heard of a major redundancy plan, but that doesn’t seem to be enough.
As a result, the company may have to cancel expansion plans. The company could therefore cancel the opening of new production plants, for example. Is the German site doomed? To be continued. Worse still, the company’s famous Foundry division could also be spun off, although this remains to be seen. This is strangely reminiscent of the situation experienced by AMD, which had to separate from Global Foundry.
In short, if there is to be a demerger, Intel Foundry could become an independent entity, or it could be sold off outright to bolster the company’s coffers. It remains to be seen what Goldman Sachs and Morgan Stanley advise, and what decisions will be taken.
