The investment company Third Point would like to encourage Intel to sound out alternative strategies in the future in order to remain an established, relevant and financially successful chip manufacturer. Third Point is Intel’s largest shareholder and accordingly has a lot of influence, which is now used to put pressure on CEO Omar Ishrak.

In the letter to Intel, Daniel S. Loeb chalked up, Third Point CEO, said the company has lagged significantly behind expectations in recent years. So let alone 2020 the market capitalization at 60 Billion US Dollars Declined. In addition, Intel has long since given up its former leadership role in the industry to the Asian manufacturers TSMC and Samsung. These are already producing in the 5 nm process and more advanced manufacturing methods are already in the works.

In a further section Loeb then goes into Intel’s misconduct. So it is not acceptable that Intel will end its 7 nm production planned for the middle 2022 only last year 2022, rather beginning 2023 had moved. In addition, the group is still not able to 01 -nm chips on a large scale, which is why even the next generation of desktop processors named Rocket Lake-S will continue to use 14 – nm chips must be used.

In many ways, Loeb appears in In his letter he also called for production to be outsourced, but at the same time he admits that this would also raise questions of national security. Since Intel also manufactures for the US Department of Defense, the US government is unlikely to approve any production in Asia. In addition, Intel seems to have a special production process tailored to its own chips, which could not easily be adopted by external production facilities. Unlike Samsung and TSMC, for example, who manufacture chips for a large number of customers and areas of application, Intel seems to be quite inflexible on this point.

Furthermore Loeb demands in his letter that the group should hire an experienced investment banker and use him to develop solutions for the current problems. At the same time, he threatens to use his own board candidates at the next annual meeting of investors if the previous staff under Omar Ishrak does not react to his demands. Ultimately, however, it is not entirely clear from the letter what exactly Loeb expects beyond the appointment of an investment banker. Following the release of the paper, Intel’s share price rose 6.1%.