A Breakup Plan to Save Intel and Preserve National Security
Intel has fallen behind its Asian rivals in chipmaking capabilities. A breakup under its new CEO would remedy that — and it would be good for America.
For the good of Intel, and the U.S., a breakup may be the best choice.
Photographer: Daniel Acker/Bloomberg
Intel Corp., a groundbreaker in semiconductors, has had a series of setbacks. Once the undisputed leader in the industry, it has fallen behind its Asian competitors in making state-of-the-art chips and its stock has badly lagged rivals. Now, with the help of prodding from activist investor Daniel Loeb, it is attempting a comeback.
On Wednesday, Intel announced that former Chief Technology Officer Pat Gelsinger will become its next chief executive officer, replacing Bob Swan effective next month. It’s a smart move and brings engineering know-how to the top job just when Intel needs it. Foremost on his to-do list is figuring out a strategy for the company to regain technical leadership, which has for years been hobbled by manufacturing problems inside its facilities. These troubles aren’t just a company-specific issue for an old Silicon Valley stalwart, though. There are much bigger implications, for both the U.S. and technology industry alike — enough to warrant dramatic action.