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cailianshe news, september 2 (editor: ma lan)intel is expected to announce a major overhaul at a board meeting this month to revive the company's financial outlook by divesting some nonessential businesses and adjusting capital spending.

according to a source, intel executives are considering selling altera, the programmable chip division, because intel is no longer able to allocate funds from profits to fund project development. another possibility is to split intel and sell its chip foundry division to buyers such as tsmc.

morgan stanley and goldman sachs group inc. are reportedly advising intel. the company's management is discussing possible unit sales but has yet to make a decision, meaning more changes could occur before the meeting.

deflated ai ambitions

the mid-september board meeting is crucial for intel, as it will determine the company's future development path. shortly before that, intel announced in august that it would suspend dividends and lay off 15% of its employees, highlighting the severity of its operating situation.

the altera division, which was rumored to be sold, was acquired by intel for $16.7 billion in 2015 and became intel's programmable solutions division. however, in march this year, the division was renamed altera as a new company.

at that time, intel expected to introduce new investment while maintaining its absolute controlling stake in altera, and expected to push the company to an ipo in two or three years. this move may have laid the groundwork for intel's financial resource constraints.

in addition to altera, mobileye and intel ifs foundry business have also experienced the process of being split into independent operating entities. among them, mobileye has fortunately been listed.

the rumor that altera was put on the adjustment list also exposed intel's inability to cope with the ai ​​field. altera was once the largest acquisition in intel's history and was regarded as an important department of intel in the field of field programmable gate arrays (fpgas) to help the company's artificial intelligence development.

in terms of the fpga market, altera and xilinx together account for 90% of the market share. the latter was acquired by amd in 2020, and its valuation soared to us$50 billion in 2022.

but before intel and amd have even fought it out in the fpga field, altera is already facing the risk of changing owners. according to sources, american chip maker marvell is one of altera's potential buyers.