NEW YORK, Aug 26 (Reuters Breakingviews) - Intel’s (INTC.O), opens new tab in a money-spending fight, and it’s falling short. The company has plowed billions into matching Taiwan Semiconductor Manufacturing (2330.TW), opens new tab prowess in producing cutting-edge chips. Yet with business slowing, boss Pat Gelsinger has far less firepower. Intel simply can’t keep up.
https://www.reuters.com/breakingviews/intel-will-be-forced-find-plan-b-2024-08-26/
The US govt will nationalize the fabs in the name of national security.
It is hard to see anyone wanting to buy the fabs -- or wanting to buy the rest of Intel without fabs. But curious as to how others here see it. How would either approach make good business sense ? Serious ( as much as possible.. ) answers please..
SPIN OFF THE FABS.
There could not be a more overwhelming obvious solution.
All the fabless companies are worth more than Intel. What does that tell you?
A fabless company outsources the huge capex risk and can dial up and down capacity as demand requires instead of sitting on worthless shells.
It’s not rocket science. The world changed and Intel missed the memo.
China has israel by the ba--s.
Plan B is to sell it all to China.