Intel mulls selling Altera and freezing $32 billion German fab project
Owing to delays in subsidy approvals, Intel is believed to be postponing the construction of its Fab 29.1 and 29.2 in Magdeburg, Germany.
Crisis-hit Intel is considering multiple options to revitalize the company, including selling off its unviable FPGA unit Altera and freezing its USD 32 billion investment project in Germany, according to media reports.
Intel CEO Pat Gelsinger and other senior company executives will present a plan to the board in September spelling out these far-reaching proposals, according to TrendForce, citing reports by Reuters and Wccftech.
The proposals include divesting non-essential businesses and slashing capital expenditures by halting the construction of the fab project in Magdeburg, Germany, and selling off Altera.
Intel is reportedly unable to allocate funds to back programmable chip producer Altera, which it acquired in 2015 for USD 16.7 billion.
According to Reuters, Intel is exploring the possibility of selling the unit to another major chip company.
Meanwhile, owing to delays in subsidy approvals, Intel is believed to be postponing the construction of its Fab 29.1 and 29.2 in Magdeburg, Germany.
Intel is facing multiple challenges. Its financial results fell short of expectations, and it is cutting over 15% of its workforce.
It reported a net loss of USD 1.6 billion for the April to June quarter compared to a net profit of USD 1.47 billion for the same period last year.
Semiconductor industry veteran Lip-Bu Tan resigned from Intel’s board after differences with Gelsinger and other directors over the company’s “bloated workforce, risk-averse culture and lagging artificial intelligence strategy,” according to a Reuters report.
