Intel’s current plan to get out of the crisis involves selling Altera and abandoning the construction of a plant in Germany

Last week it became known that in mid-September the Intel board of directors would meet to consider a restructuring plan that would allow the company to improve its financial position. As Reuters clarifies, there is no talk of separating production assets yet, but Altera may be sold, and the company is ready to abandon the construction of a plant in Germany.

Image Source: Intel

According to Reuters, only a few proposals are ready so far and their composition will change in the future, but sources claim that the idea of ​​separating the company’s production assets is not yet on the agenda. Instead, the board of directors is preparing to discuss the sale of a subsidiary of Altera, which develops programmable matrices, and according to Intel’s original plan, was supposed to prepare for an IPO to attract funds from outside investors for its development.

Now the dominant idea is to sell Altera entirely, and although the deal amount has not yet been mentioned, chip developer Marvell is mentioned as a potential buyer. Let us recall that Altera was purchased by Intel in 2015 for $16.7 billion, later it gained more independence in order to prepare for a public offering of shares, but now the fate of this structure may turn out differently. Options for selling other structural units of the company are also being discussed.

Another relevant point in the plan to save the company is the delay or complete abandonment of the construction of an Intel plant in Germany. This project will require at least $32 billion in expenses, and neither Intel nor the German authorities, who are partially subsidizing it, currently have that kind of money. In 2025, the company plans to reduce capital expenditures by 17% to $21.5 billion, and building a plant in Germany simply does not fit into the new plan.