Former Intel Directors Propose Taking Intel Private to Revive Competitiveness
Following the surprising equity partnership between Intel and NVIDIA, the semiconductor industry continues to buzz with speculation. Adding to the conversation, several former Intel board members have published an article in Fortune magazine suggesting a bold move: taking Intel private.
They argue that privatization could free Intel from the constraints of the stock market, enabling it to focus more aggressively on R&D, advanced process technology, and AI innovation.
Why Former Intel Directors Want Privatization #
The proposal comes from Charlene Barshefsky, Reid Hunt, and James Plummer, who highlight Intel’s ongoing struggles:
- Quarterly financial pressures versus long-term R&D spending
- High costs of advanced process development and new architectures
- Loss of flexibility in responding to capital market expectations
Their vision: a U.S.-led consortium acquiring all public Intel shares, combined with a structural separation of Intel’s chip design and foundry businesses.
This could unlock the value of Intel’s manufacturing division while giving the U.S. a stronger path toward semiconductor independence, reducing reliance on TSMC.
Talent Retention and AI Leadership #
Intel has been facing a talent drain in AI and other cutting-edge fields. Former directors argue that as a private company, Intel could:
- Offer more flexible compensation packages
- Use custom equity incentives to attract top engineers and scientists
- Refocus on AI, data centers, and advanced processes
They project that by 2028, privatization could help Intel:
- Regain leadership in AI hardware and semiconductor technology
- Deliver “hundreds of billions of dollars” in returns for U.S. taxpayers
- Strengthen national security through domestic chip capacity
The Debate: Supporters vs. Opponents #
The proposal has ignited debate across Wall Street and Washington:
Supporters say:
- Intel could operate as a national strategic enterprise
- Government backing would ease financial burdens
- An independent foundry could provide a strong alternative to TSMC
Opponents caution:
- Privatization would require massive capital outlay
- Risks harming existing shareholders
- Separating design and foundry at Intel’s scale would be extremely complex
Intel at a Crossroads #
Whether or not privatization happens, the proposal underscores a critical reality:
Intel is at a strategic crossroads.
- With investments from the U.S. government and NVIDIA, Intel is already under pressure to reinvent itself.
- Rising competition in AI, HPC, and advanced nodes is forcing a rethink of its fifty-year-old business model.
The coming years will determine if Intel reclaims its leadership in semiconductors—or cedes further ground to rivals like TSMC, Samsung, and AMD.