What Intel split might mean for Israel

• Published date: 02 September 2024
• Author: Assaf Gilead
• Publication title: Globes (Rishon LeZion, Israel)

Intel is currently conducting a rearguard action to protect itself against moves such as a hostile takeover of the board by shareholders, after delays in the strategy of CEO Pat Gelsinger of opening up Intel's production capacity to competing companies. Meanwhile, the company is hemorrhaging cash and losing market share faster than it had thought

Gelsinger became CEO in 2021 aiming to focus on two main processes: a technological quantum leap that would help Intel compete with Taiwanese company TSMC in production, and opening up of Intel's production capacity (which up to then had only produced for Intel itself) to attract competitors such as Nvidia and AMD.

Gelsinger took up his post in a euphoric period as far as sales of personal computers were concerned, but since then the pace has slackened, and the plan to join in the AI revolution through Intel's Gaudi chips also failed. Cash flow became negative, gross profit margins declined, and Intel began to delay the construction of factories in Israel and Germany , and to raise capital from private equity funds for construction of factories in the US and Ireland

Intel investors have been pressing Gelsinger to spin off...