The departure of Intel's CEO Pat Gelsinger has reignited discussions about whether the company should split its costly chip factories from its core business operations.
Splitting off Intel's fabs could enhance its balance sheet, yet the decision is complicated by the $7.9 billion in CHIPS Act funding that mandates majority control over foundries.
Intel's chip foundries are crucial for U.S. national security and reducing dependence on foreign manufacturing, even though they have continually reported financial losses.
The challenge lies in the inherent complexity of semiconductor manufacturing, which is costly and demands exceptional precision, raising questions about the long-term viability of a separation.
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