Third Point recommends Intel take immediate action versus chipmakers


Third Point LLC, an activist hedge fund has recently sent a letter to Intel and recommend the company take immediate action versus losing businesses against Apple, Microsoft, Amazon and others.


In recent years the chipmaker has struggled to meet its clients demands and have fallen to rivals when it comes to power consumption and speed. Intel has not capitalized on taking demand for semiconductors and are now facing threats, such as Apple’s transition to using custom silicon processors.

Third Point has requested Intel restructure its business and explore alternative strategies. Furthermore, Intel was urged to address its human capital management issue, which saw talented chip designers leave the company due to ‘demoralizing status quo’.

Microprocessing manufacture is now led by Samsung and TSMC, while data center and core PC markets are now held by AMD. One way to resolve this, according to Third Point was to split manufacturing and chip design, and seek joint ventures for its manufacturing department.

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Samantha Wiley

Samantha is a senior news editor at iLounge. She has been covering the technology industry for over five years, writing about Apple, Google, and other major companies. Samantha has also worked as a reporter and editor for several other publications.