Third Point CEO Daniel Loeb David Paul Morris/Bloomberg After a tough year, Intel executives received one last 2020 surprise. It came in the form of a sharply worded letter this past week from activist investor Daniel Loeb. Loeb, CEO of hedge fund Third Point, laid out the need for change at the once pioneering chip maker...
We cannot fathom how the boards who presided over Intel's decline could have permitted management to fritter away the company's leading market position.
The loss of manufacturing leadership and other missteps have allowed several semiconductor competitors to leverage TSMC's and Samsung's process technology prowess and gain significant market share at Intel's expense.
Of special concern is Intel's human capital management problem and the absence of an articulated plan to address it.
Intel could materially leverage TSMC (say for 25% to 50% of their needs) in order to restore the competitiveness of their chips.
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