In December last year, activist hedge fund Third Point LLC had urged Intel Corp. to explore strategic alternatives, including selling off the chip maker’s many acquisitions and splitting its design and manufacturing operations, to recover from its recent downward spiral—both in terms of market share as well as mindshare. Last week, Intel CEO Pat Gelsinger, on the job a little over a month, laid out his new ambitious plan for reviving the semiconductor giant.
The plan will involve more outsourcing to the company’s chip-manufacturing rivals over the next couple of years as well as boosting Intel’s own production capabilities to make chips designed by other companies. More on this later.
While it’s going to be a long-drawn process to recover lost ground, Wall Street cheered the effort with the stock rising more than 6% in after-hours