After a long period of losing market favor, Intel is now standing at a crucial crossroads.

This week, the company's board of directors held a three-day meeting to discuss how to deal with the continued poor financial performance and reposition this once chip giant.

According to Bloomberg, the board of directors failed to reach a consensus on the specific path forward during this week's meeting. However, the board is considering multiple strategic options, including reducing billions of dollars in factory projects, selling parts of its subsidiaries, and even potentially spinning off its core business into a separate company.

At this critical moment, the decision of Intel's board of directors.

According to Bloomberg, the board of directors is seeking ways to improve Intel's financial situation, even if it means giving up some ambitious plans. The board is considering multiple options, but the best solution has not yet been determined, and all options are facing challenges.

Regarding acquisition rumors, the board of directors clarified that there are currently no specific offers to acquire part or all of Intel's business.

In addition, there are currently no plans to replace CEO Pat Gelsinger. Most Intel insiders believe that there were already issues within the company when Gelsinger took over.

Hendi Susanto, portfolio manager at Gabelli Funds, an Intel investor, said, "He (Kissinger) does make people expect all challenges to be resolved in a shorter time, and it's hard to imagine who could do better."

An Intel spokesperson said in an email, "We are on the verge of completing historic process technology innovations and reestablishing product leadership in key areas such as AI PC category. The plans announced last month will cement our progress and accelerate the next phase of our transformation as we take decisive action to drive profit growth."

Several important projects may be downsized.

Some analysts believe that one option for Intel to improve its financial situation is to sell the divisions it acquired before Kissinger took over, including the previously acquired Mobileye and Altera.

Both of these companies, after being acquired by Intel, failed to meet expectations. Mobileye, as an autonomous driving technology company, has been affected by the downturn in the automotive industry; Altera has performed poorly due to reduced spending by telecommunications companies.

Analysts believe that Intel may consider selling its stakes in these two companies, but its selling plans may face challenges due to unfavorable market conditions, and may result in significant losses for the company.

Another target for downsizing may be Intel's semiconductor factory network. Due to the deteriorating financial situation, Intel has had to reassess its global factory construction plans.

Intel's factory projects in Arizona and Ohio are important components of the Biden government's chip program, but due to the company's financial pressure, these projects may face delays or reductions.

In addition, Intel's factories in Germany, Poland, and Malaysia may also be forced to suspend operations.

What does the future hold for Intel?

After assuming office in 2021, Kissinger predicted that Intel would not only successfully compete with chip design companies such as Nvidia, but also compete with Taiwan Semiconductor in the foundry business. But obviously, these plans are still far off.

Despite Kissinger's pledge to revive its glory, Intel's road to revival is filled with thorns. In the financial statements in August, analysts described it as "the worst earnings report ever": performance fell short of expectations, stock prices plummeted, plans to cut 15,000 jobs, and suspend dividends.

"While Intel's overall strategy may have made sense at first, the current business runway no longer seems to provide enough support for it to make it to the end," said Stacy Rasgon, an analyst at Bernstein Bank Group.

Intel's current predicament not only concerns the company itself, but also affects the US government's plans to revive the domestic semiconductor industry.

The Biden administration sees Intel as a core partner and provides billions of dollars in support. If Intel cuts its factory projects, it will not only hit the company's morale, but also have a negative impact on US chip manufacturing policies.

This crucial turning point not only determines Intel's future, but also affects the global chip industry landscape. Kissinger's road ahead is not smooth, but for Intel, there is no way back at this moment.

Editor/ping