Former Intel Corp. INTC CEO Craig Barrett has strongly criticized calls to divide Intel's business, arguing that the company should focus on its recent chipmaking breakthroughs instead.
What Happened: In an opinion piece published in Fortune on Saturday, Barrett pushed back against the idea—proposed by former Intel directors—that Intel should split its foundry business from its chip design division to better compete with TSMC.
There have been reports of potential deals involving Broadcom and TSMC that could lead to Intel’s breakup. Broadcom has been exploring a bid for Intel’s chip design and marketing business, seeking a partner to take over the manufacturing unit.
Barrett argued that Intel should prioritize its 18A process node, which could help it close the technology gap with TSMC.
"The reason why Intel's foundry business failed in the past years is because it lacked the technology to compete," Barrett wrote. "Splitting off the foundry will only serve as a distraction and introduce complications."
Barrett also delivered a harsh rebuke of Intel's leadership, blaming the board for the company's decline over the last decade. He specifically called out Intel's decision to oust CEO Pat Gelsinger, saying: "A far better move might be to fire the Intel board and rehire Pat Gelsinger to finish the job he has aptly handled over the past few years."
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Why It's Important: Barrett's comments underscore the ongoing debate over Intel's future as it struggles to regain its competitive edge in semiconductor manufacturing.
Earlier, Bill Gates also expressed disappointment over Intel’s decline, noting the company’s struggles in chip design and manufacturing. He also questioned whether Intel could recover after the CEO exit and falling behind in AI.
Intel is facing financial difficulties. In January, the company reported its fourth-quarter earnings, revealing a year-over-year revenue decline of $1.15 billion. Its current market capitalization stands at $102.77 billion.
Last week it was reported that Intel has delayed the opening of its $28 billion Ohio chip plant to 2030. This delay marks the second time in 2025 that the project has been postponed.
Price Action: Intel’s stock closed at $23.73 on Friday, rising 2.77%. In after-hours trading, it added another 0.29%. Year to date, the stock has gained 17.36%, according to Benzinga Pro data.
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