Intel Corp (NASDAQ:INTC, ETR:INL), the US chipmaker, is drawing up a plan to dispose of non-core activities and cut capital spending to try to revive its fortunes, according to reports at the weekend.
Programmable chip unit Altera is one of the businesses earmarked for disposable, said the reports, with the plan to be presented by chief executive Pat Gelsinger to the board later this month.
Altera, which Intel acquired for $16.7 billion in 2015, had already been earmarked for a partial spin-off, but might now be sold entirely said the report.
Intel’s contract semiconductor manufacturing operation, or foundry, is not said to be among the businesses up for sale though the strategic details have yet to be firmed up and might change said sources quoted in the reports.
The foundry or chip-making arm already reports and operates separately from its design business.
Intel has been eclipsed by competitors such as Nvidia in recent years with its market cap dropping to below US$100 billion after its last results. Nvidia is worth around US$3 trillion.
According to Reuters, planned new factories are likely to see the brunt of the reduction in capital spending including a US$32 billion project in Germany.
In August, Intel said it expects to cut capital spending to $21.5 billion in 2025, down 17% from this year, while it also halted the dividend and cut 15% of staff.
Bloomberg earlier reported other options include a potential split of Intel’s product design and manufacturing businesses.