Intel CEO Pat Gelsinger and key executives are set to present a significant restructuring plan to the company's board later this month, aimed at cutting unnecessary businesses and revamping capital spending. This initiative comes as Intel seeks to revive its fortunes amid intense competition, particularly from Nvidia, the leading AI chipmaker, which has a market capitalization of around $3 trillion. In contrast, Intel's market value has fallen below $100 billion following a disappointing second-quarter earnings report in August.

The upcoming plan is expected to propose cost-saving measures, including the potential sale of its Altera programmable chip unit, which Intel acquired for $16.7 billion in 2015. Gelsinger and his team will present these ideas at a mid-September board meeting, where they will also discuss further reductions in capital spending, particularly regarding factory expansions. Reports suggest that the company may pause or halt its $32 billion factory project in Germany, which has faced delays.

Intel has already separated its foundry business from its design operations, reporting financial results for each segment independently since the first quarter of this year. This separation aims to protect the technology secrets of customers using Intel's manufacturing facilities.
The company is currently navigating one of its most challenging periods, striving to catch up in the AI sector. Gelsinger has acknowledged the difficulties faced by Intel and emphasized the importance of addressing investor concerns. The board meeting later this month will be crucial for determining which business units Intel will retain and which it may divest.

In addition to the restructuring plans, Intel has engaged Morgan Stanley and Goldman Sachs to advise on potential asset sales, although no bids have been solicited yet. The outcome of the board meeting will likely shape Intel's strategy moving forward, particularly regarding its programmable chip business and overall operational focus.