COLUMBUS, Ohio — Intel shares climbed nearly 8% on Friday after Bloomberg reported the company is talking with investment bankers about the possibility of selling off its factories or shelving plans to build new ones.
The report, citing sources familiar with Intel’s plans, said the company’s board will take up the subjects at a meeting next month. But Bloomberg reports no major decisions are imminent and that it’s more likely that Intel would slow its expansion plans rather than break up the business.
Meanwhile, Intel CEO Pat Gelsinger says he’s working hard to address investor concerns.
The chip giant's stock price plunged 26% following the company’s quarterly earnings report earlier this month, its worst day on Wall Street in over 50 years. The shares are down 59% this year, trading near their lowest in more than a decade.
It’s not only investors who are taking a hard look at the company. Florida Senator Rick Scott sent Gelsinger a letter Wednesday questioning giving $8.5 billion to Intel through the CHIPS Act when the company is preparing to cut 15,000 workers.
“Would Intel agree to forfeit funds provided by the CHIPS and Science Act if Intel cannot deliver on its promised investments?" the Senator asked in the letter.
“He is dead wrong. They have not received $8.5 billion. They have not received a dime. It’s time that US policymakers understand the urgency of the situation and stop checking whether intel has daycare centers and get the money out so they can invest in advanced semiconductors for this country,” said Stephen Ezell, vice president of Global Innovation Policy at the Information Technology and Innovation Foundation.
Gelsinger is under pressure to make Intel more competitive globally. He told investors Thursday that company sales will be depressed for many years and should be on track by 2026.
“He said they were adjusting their plan to be more conservative and don't want any negative surprises for their investors going forward,” said Mike Demler, a semiconductor analyst and consultant.
Intel’s $28 billion semiconductor plant in Licking County remains under construction.
It is the largest investment in Ohio history. It was supposed to open in 2025, but the company announced in February of last year that it would open in late 2026. The company said the reason was “due to the sheer size of the project and funding from the CHIPS Act and business conditions."