The chip company plans to slice off unnecessary business and cut spending.
According to Reuters, CEO Pat Gelsinger is working with top executives on a plan that will be presented at a meeting with the board in mid-September.
Altera, the subsidiary specializing in FPGAs, will most likely be essential to the rescue plan. Due to Intel’s current situation, it may no longer be feasible to continue investing in this maker of programmable chips.
Altera was bought in 2015 for $16.7 billion (15.1 billion euros). Intel still owns Altera but has already taken steps to make the company independent. Plans to sell shares at a later date, although a date for that has not yet been set, are in place.
The Reuters source now suggests that these plans may be changing. Intel may be considering selling Altera entirely. Intel is already exploring options for a sale, and chipmaker Marvell is mentioned as a possible buyer.
Intel has not yet solicited sales proposals for product divisions. However, this would change if the mid-September board approves the plan.
Less spending
Gelsinger will likely also include steps to reduce costs in the plan. In doing so, Intel is expected to invest less in plant expansion. The future of the planned site in Magdeburg, Germany, is hanging by a thread. Building this plant would cost an estimated $32 billion. Reuters cites two options for this location: pausing or stopping the project entirely.
In August, Intel announced that it plans to reduce total spending by $21.5 billion over a 12-month period.
Reuters stresses that the plans to be presented will not include proposals to split up or sell contract manufacturing operations to TSMC, for example.