From any area the following has barely gone past the side of Intel’s semiconductor manufacturing problems in recent years. The company has already done a lot to fix the problems and increase capacity, but everyone does not think that is enough. Reuters reports that hedge fund Third Point has approached Intel’s chairman of the board in a letter urging the board to carefully assess whether or not the design and manufacture of the chips should remain under the same roof. Third Point holds nearly $ 1 billion worth of Intel shares.

Third Point CEO Daniel Loeb said Intel needs to take immediate action to increase the company’s role, especially in PCs and data centers, where it is currently losing its stake in AMD. In addition, Loeb mentions that the company has already lost its leading position in semiconductor manufacturing to Asian TSMC and Samsung, in addition to which it is concerned about Intel’s position in the NVIDIA-dominated artificial intelligence model market. On top of all that, the company’s large customers such as Amazon, Apple and Microsoft are currently developing their own chips and, in the case of Amazon and Apple, have received them as far as production.

Third Point is particularly concerned about the rapid pace of circuit manufacturing in East Asia, which it considers unstable. Intel has not traditionally been favored by third parties in semiconductor manufacturing, although it has also sold its production capacity to third parties. Unbundling semiconductor manufacturing into its own business could open up new opportunities to meet the needs of third parties and keep circuit manufacturing physically in the United States.

Intel has also provided a brief response to the Third Point letter. In its reply, Intel states that the company welcomes proposals from all its investors to increase the company’s value and looks forward to working on Third Point’s ideas.

Source: Reuters