Former Intel Board Members Urge Private Split Into Units

Intel’s Former Board Members Push for Company to Go Private After NVIDIA Deal.Intel’s former board members are urging the company to consider going private. This call to action follows the recent strategic partnership with NVIDIA. The recommendation was made public in an op-ed on Fortune.Former members believe this move would free Intel from quarterly pressures. It would allow a sharper focus on long-term manufacturing and innovation goals. The timing aligns with significant U.S. government and corporate investments in domestic chip production.

Strategic Shift Proposed for Intel’s Future

The op-ed was co-authored by former Intel board members Charlene Barshefsky, Reed Hundt, and James Plummer. They argue that private ownership could dramatically accelerate Intel’s turnaround. This structure would let management prioritize product development over short-term financial metrics.A key proposal is splitting Intel’s design and foundry operations. The authors believe a standalone foundry would be a major win for U.S. policy. It would provide a reliable domestic alternative to TSMC for major chip designers.

Projected Benefits of a Private Intel

The former board members project enormous financial returns. They suggest the move could bring “hundreds of billions” to American taxpayers by 2028. This would stem from a revitalized company and a stronger domestic supply chain.Going private could also help Intel stem its talent drain. The authors note private firms can offer more competitive compensation. Retaining top AI and semiconductor talent is seen as critical for success.National security is another significant factor cited. A privately-held, U.S.-based Intel would bolster the country’s technological independence. This is increasingly important amid global semiconductor competition.

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This proposal highlights the intense pressure on Intel to reclaim its leadership. The call to go private represents a radical strategic option. Its future moves are critical for the entire technology industry.

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Why do former board members want Intel to go private?

They believe it would free the company from short-term shareholder expectations. This allows a greater focus on long-term manufacturing and innovation goals. It is seen as a path to faster recovery.

What is the proposed split for Intel?

The plan suggests separating Intel’s chip design unit from its manufacturing foundry business. This would create a pure-play foundry competitor to TSMC. It aims to attract other major chip designers as customers.

How could this benefit U.S. national security?

A strong, U.S.-owned foundry provides a secure domestic source for advanced chips. It reduces reliance on foreign semiconductor manufacturers. This is a key goal of the CHIPS and Science Act.

What is the projected timeline for these returns?

The former members project significant returns by 2028. They suggest taxpayers could see hundreds of billions in value. This would come from a more successful company and a stronger supply chain.