Dan Loeb's Third Point calls on Intel (INTC) to explore strategic alternatives - Reuters
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(Updated - December 29, 2020 12:28 PM EST)
Dan Loeb's Third Point hedge fund has called on Intel (NASDAQ: INTC) to explore strategic alternatives, Reuters reported. The fund wants the company to look at whether it should remain an integrated device manufacturer, according to a letter sent to the chipmaker's chairman.
Third Point has amassed a nearly $1 billion stake in Intel, Reuters reported citing people familiar with the matter.
Loeb said Intel's most urgent task was addressing its "human capital management issue", as many of its talented chip designers have fled, "demoralized by the status quo".
Further, he notes the company has lost its leading position in microprocessor manufacturing to Taiwan Semiconductor Manufacturing and Samsung Electronics.
"Without immediate change at Intel, we fear that America's access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more," Loeb added.
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Related EntitiesDaniel Loeb, Third Point LLC
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