Intel's radical proposal: "delisting and splitting" the foundry and design departments, can Trump and Nvidia join forces to reshape America's chip supremacy?

The U.S. government and Nvidia have acquired nearly 20% of the shares, with former directors suggesting privatization and splitting the company as a scalpel to pave the way for Intel to break free from group discounts and regain process leadership. This action affects U.S. semiconductor security and the AI supply chain, but also faces huge capital, regulatory, and coordination challenges. (Previous context: Nvidia announced a $5 billion investment in Intel: collaborating on chip design, Intel soared 30% in pre-market) (Background: Not only Intel! The Trump administration's 'subsidy exchange' extends to TSMC and Samsung, with national capital coming on strong) Intel is at a turning point: the U.S. government holds nearly 10% of the shares, and Nvidia invests another $5 billion. According to a recent report from Fortune, four former Intel directors are calling for a radical proposal for the company to be privatized and split. This move is not just a corporate governance issue but is closely linked to geopolitical, supply chain security, and AI competitiveness. Why are the national team and leaders investing? Intel once dominated through vertical integration, but with competitors like TSMC and AMD rising, the company's operations have increasingly declined. The four former directors argue that a fundamental reorganization is needed to return to competitiveness. They advocate for a consortium to acquire Intel and delist it, then split the company into two: an independent foundry entity and a business unit focused on design. The foundry side will concentrate on serving global customers, requiring an investment of $100 billion over the next decade to catch up with TSMC; the design side will focus on PC, server, and data center processors, releasing the valuation lost in manufacturing. On the other hand, privatization can allow management to adjust compensation structures, attract top engineers, and use relisting as a long-term incentive. In the future, they plan to reference the experience of AT&T in the 1980s, estimating that the entire reorganization will be completed within a year, with phased listings or sales before 2028. Coordination challenges and potential resistance However, the U.S. CHIPS Act includes conditions requiring Intel to maintain at least 51% ownership of the foundry entity for five years. According to Windows Central, this condition may limit a complete split. Furthermore, Intel's foundry has incurred annual losses in the billions in recent years, and the massive capital expenditure will test the patience of the consortium. The operational aspects are equally complex. Intel's internal processes from design, manufacturing to packaging are tightly linked, and any cuts affect the supply chain, customers, and workforce. Before risks become clear, whether major customers like Microsoft and Apple are willing to transfer orders to a newly unproven foundry company is also a big question mark? Overall, there is currently a divergence of views among Intel's management, board, and investors regarding this radical proposal, and the regulatory approval process is fraught with variables. The next step for U.S. semiconductor hegemony However, if Intel successfully splits, the U.S. may increase the resilience of its AI supply chain and create high-paying jobs and tax revenue; conversely, if capital or coordination fails, Intel may fall into a long-term stagnation in transformation, making advanced processes more reliant on overseas sources. Regardless of the outcome, Intel's reorganization has transcended corporate success or failure, directly reflecting the U.S.'s position in the next generation of technology competition. The government, large tech companies, and the capital market are betting together on whether they can turn the heavy burdens on the profit and loss statement into strategic assets, which will become one of the most watched projects in the AI era. Related reports Intel reportedly to cut 20% of its workforce, Chen Liwu leads the plunge '15th generation CPU at a discount, overclocking can be guaranteed' to save dismal sales SoftBank injects $2 billion into Intel, Trump administration reportedly considering acquiring 10% of Intel shares as a national shareholder, boosting stock price after hours Nvidia and AMD agree to Trump's '15% AI chip tax', in exchange for importing H20 and MI308 into China, gross profit directly transferred to Washington <Intel's radical proposal: 'delisting and splitting' foundry and design departments, can Trump and Nvidia reshape U.S. chip hegemony?> This article was first published in BlockTempo, the most influential blockchain news media.