Intel Considers Splitting Foundry Business, Abandoning Factory Plans – Bloomberg By Investing.com

Investing.com– Intel Corporation (NASDAQ: ) is considering options to weather a historic decline, including potentially spinning off its foundry business and scrapping plans for new factories, Bloomberg reported Thursday.

The chipmaker is in talks with investment bankers about potential options and has met with Goldman Sachs Group Inc (NYSE: ) and Morgan Stanley (NYSE: ) on track, Bloomberg reported, citing people familiar with the matter.

In early August, Intel suspended its dividend and cut about 15 percent of its workforce as it struggled to catch up with foundry rivals, notably Taiwan’s TSMC (NYSE: ).

Once the world’s largest chipmaker, Intel fell on hard times in the 2000s amid increased competition from rivals such as Advanced Micro Devices Inc (NASDAQ: ) and as it struggled to keep up with the demands of the smartphone industry and mobile computers.

Apple Inc’s (NASDAQ: ) decision to develop its own silicon and stop using Intel chips was also a major blow to the chipmaker.

Intel’s challenges have come to a head in recent years, with NVIDIA Corporation’s (NASDAQ: ) dominance in artificial intelligence further reducing Intel’s sales.

The Bloomberg report revealed that Intel is now considering separating its product design and foundry businesses, also scrapping expansion plans as it seeks to streamline its operations.

The company could not immediately be reached for comment.