Intel CEO Pat Gelsinger and several key executives will present a turnaround plan during a board meeting. This plan should pull the company out of its predicament and restore its position as a leading chipmaker. This was reported by Reuters.
The plan to be presented by Gelsinger and other executives should outline how the company can reduce overall costs. Among other things, they should propose the possibility of selling certain businesses, such as the Altera programmable chip, which Intel can no longer afford to produce.
The board meeting will be held sometime in mid-September. Geslinger and the executives reportedly have no plans to split the company and sell parts of the contract manufacturing or foundry operations to a buyer such as TSMC.
The presentation from the executives is not yet finalized and may change before the actual meeting, including plans for manufacturing operations. As of now, Intel has already separated its foundry and design businesses, in part to ensure that customers of the design division do not have access to the technological secrets of customers using the company's fabs.
Gelsinger and other executives are expected to reduce the company's capital expenditures on plant expansion. Among other things, this plan may include a temporary or complete halt to the construction of a $32 billion plant in Germany.
In addition, the company still needs to decide which businesses can be sold and which will need to be retained.
It was recently reported that Intel is talking to investment bankers about how the company can get out of the predicament it is currently in. Among other things, the idea of an acquisition or merger, as well as a business spin-off, was mentioned.