September 2, 2024 /SemiMedia/ — Intel CEO Pat Gelsinger is expected to present a cost-cutting plan to the company's board in mid-September, according to sources familiar with the matter. The plan aims to shed non-core businesses and adjust capital expenditures in an effort to revive the chipmaker's fortunes. It may include proposals to sell off certain units, such as the programmable chip division Altera, as Intel can no longer sustain funding for these businesses amid declining profits.

Sources indicated that the proposal does not currently involve splitting Intel or selling its contract manufacturing business (foundry) to buyers like TSMC. Changes to Intel's manufacturing strategy are still under consideration and could be revised before the upcoming board meeting.

Earlier this year, Intel separated its foundry operations from its design business, and has since been reporting the financial results of the foundry business independently. A firewall has been established between the design and manufacturing units to ensure that design clients do not gain access to the technical secrets of those using Intel's foundries, known as fabs.

This proposed plan is seen as a critical step for Intel to refocus on its core strengths and boost its competitive edge. The board is expected to review and possibly refine the proposal in the upcoming meeting to align it with the company's long-term strategy.