Intel under pressure to explore strategic options amid chip industry challenges

guest · Dec 29, 2020

Intel under pressure to explore strategic options amid chip industry challenges
December 29, 2020
https://appleinsider.com/articles/2...rategic-options-amid-chip-industry-challenges

Hedge fund Third Point is urging Intel to make some big business changes in the face of losing chip supremacy to efforts by Apple, Amazon, Microsoft, and TSMC.

Third Point CEO and founder Daniel Loeb wrote a letter to Intel chairman Omar Ishrak on Tuesday calling for the company to boost its position as a provider of chips for computers and data centers, Reuters reported. Third Point has a nearly $1 billion stake in the chipmaker.

"Without immediate change at Intel, we fear that America's access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more," Loeb wrote.
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According to Loeb, Intel has lost its pole position in chip making to Samsung and Apple's chip fabricator Taiwan Semiconductor Manufacturing Company (TSMC). He added that Intel is also losing market share to AMD and missing out on the artificial intelligence market dominated by NVIDIA.

Loeb added that Intel could offer new solutions to retain customers like Apple, Microsoft, and Amazon instead of letting them send manufacturing away.
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