Intel is currently facing significant financial difficulties. The company might halt its graphics card production and has lost its position in the Dow Jones Industrial Average to AMD during a period when the US Government suggested a merger with AMD. Intel, which incurred a loss of 16.6 billion dollars in the third quarter, is noted for a decline of more than 6000% in its annual profit margin. The US administration suggests that Intel should sell its chip design business unit to a competitor to improve its financial situation. Potential buyers include companies like AMD and Marvell.
Sale of Intel’s Division on the Agenda
If the merger occurs, Intel’s chip design division will be transferred to the new owner, but the manufacturing part will continue to operate independently. Although Intel has earned the right to receive 30 billion dollars in government aid under the CHIPS act supporting chip manufacturing in the US, it has not yet utilized this aid because it has not been able to present its financial situation and growth plans. The company’s future success seems to depend more on its manufacturing facilities than its recently released processors. Intel abandoned the 20A technology to focus on the 18A technology and succeeded in obtaining contracts from Microsoft and the US Department of Defense for this technology. These developments raise curiosity about what Intel’s future strategic moves will be.