Former Intel Board Members Recommend “Going Private” and Splitting into Foundry and Chip Design Divisions After NVIDIA Partnership and US Government Investment

Intel’s former board members recently shared intriguing perspectives on the company’s future, particularly in light of its partnership with NVIDIA. They propose that Intel, also known as Team Blue, should consider going private as a strategic move.

Former Board Members Advocate Going Private for Intel’s Future Financial Success

The unexpected alliance between Intel and NVIDIA caught many off guard, particularly because of Intel’s perceived sluggishness in the marketplace. The favorable response from capital markets to this partnership signals a potential revival for Intel’s operations. In an opinion piece for Fortune, former board members like Charlene Barshefsky, Reed Hundt, and James Plummer articulated their vision for the company’s trajectory post-acquisition of stakes by both NVIDIA and the U. S.government. Their recommendation is straightforward: Intel should transition to a private entity to fully leverage its assets.

The rationale behind this suggestion centers on freeing Intel from the constraints of quarterly financial reporting to shareholders, allowing the company to refocus on product development. They advocate for a U. S.-led consortium to acquire Intel’s publicly traded shares and emphasize the need for a strategic separation between Intel’s design operations and its foundry capabilities.

The creation of a successful foundry, drawn from Intel’s manufacturing assets and separated from the design businesses, would be a big win for the Trump administration. It would be an even bigger win for the big semiconductor design firms that are otherwise totally dependent on TSMC.

Another significant benefit of moving to a private model, as noted by former board members, includes enhancing Intel’s ability to attract and retain top talent in the artificial intelligence sector. They argue that private firms can offer more attractive compensation packages, contrasting with the talent drain currently faced by Intel. This shift could position Intel advantageously by 2028, potentially generating substantial financial benefits for American taxpayers and bolstering national security interests.

Image Credits: Intel’s CEO Lip-Bu Tan

While these insights from former board members are thought-provoking, transitioning to a private structure does come with its own set of challenges, particularly regarding the logistics of purchasing outstanding public shares and addressing shareholder concerns. Nevertheless, their op-ed underscores an urgent need for Intel to reassess its strategy, especially given the opportunities presented by the NVIDIA collaboration.

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