Intel’s chip-making business has struggled to compete with TSMC for years. This has forced customers like Broadcom and Qualcomm to use less efficient production lines, potentially harming their stock value.
Citi analysts think Intel should quit the chip-making business altogether. They believe it’s unlikely to succeed, even slightly. Instead, Intel should focus on CPU technology, where it can still make a difference.
But Vivek Arya disagrees. He says splitting off Intel’s business would be too complicated and time-consuming. The new company would face many challenges, including complying with regulations in multiple countries and overhauling its manufacturing processes.
Challenges Ahead
If Intel were to separate its chip-making business, it would need to navigate complex regulatory requirements. This could involve dealing with different laws and standards in various countries, which would be a significant undertaking.
Manufacturing Overhaul
Additionally, the new company would need to upgrade its manufacturing processes to be more competitive. This would require significant investments in new technology and equipment, as well as training for employees.
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