Intel prepares maxi cutback plan

Intel is preparing a turnaround for survival. The American tech giant, which has long been grappling with a crisis linked to fierce competition and the failure to capture the burgeoning artificial intelligence business, is in fact preparing a shock cure ahead of the board meeting scheduled for mid-September.

In the past few days, rumours had emerged about Goldman Sachs and Morgan Stanley grappling with the preparation of strategic plans for Intel. Today, the Reuters news agency is rounding out the dossier, revealing that CEO Pat Gelsinger and the group's top management are working on a plan that could include the sale of the Altera programmable chip unit and also the shelving of the $32 billion super factory in Germany.

Intel has already separated its foundry business from its design business and reported financial results separately from the first quarter of this year. The company has erected a wall between its design and manufacturing activities to ensure that potential customers in the design division do not have access to the technological secrets of customers who use Intel's factories to produce their chips.

Intel is going through one of the worst periods in its history, crushed by competition from Nvidia, increasingly dominant in the production of chips for artificial intelligence, from the height of its $3 trillion market capitalisation. In contrast, Intel dropped below $100 billion after a disastrous second quarter balance sheet.

The mid-September board meeting is crucial for the former chip king. In August, Intel reported a disastrous second quarter, which resulted in the suspension of dividend payments and a 15% cut in staff, with the aim of saving USD 10 billion.