5723ed96 6310 40a3 8e1d 603654ee204d 169 (1) Mitra IT | Your Trusted & Reliable Software Solutions

Intel’s Fate is on the Edge

Jakarta, CNBC Indonesia Chip giant Intel is getting worse. The company’s performance continues to decline during 2024.

CNBC International reported that half of its value has been lost this year. Its income report is also the worst in the last 50 years, quoted Monday (23/9/2024).

Meanwhile, Intel plans to separate its manufacturing division from its core business of designing and selling computer processors. Qualcomm has reportedly contacted to take over.

It is unclear whether Intel is involved in the conversation with Qualcomm. However, representatives for both declined to comment.

Intel is starting to lose its identity as the world’s largest chip manufacturer. The 56-year-old company was defeated by another giant, Nvidia, which has a value of US$3 trillion or 30 times the market capitalization 30 times higher than Intel.

In addition, Intel also carried out massive layoffs. The company cut 15 thousand workers or more than 15% of its workforce.

In the midst of the company’s deteriorating condition, Intel continues to maintain its factories. CEO Pat Gelsinger says it’s better to operate as it is now.

However, Intel is still setting up a separate internal unit for the foundry. It will have its own board of directors and governance structure, and it can also seek capital from outside the company.

The company is also preparing to launch a manufacturing process called 18A next year. It has seven products in development and has already secured major customers, including Amazon, which plans to use its fabs.

“It’s important to say we’re moving into the next phase of this foundry journey. As we move to build efficiencies into it and make sure we have a return to shareholders for the significant investment,” Gelsinger said.

SOURCE : CNBC INDONESIA