Semiconductor giant Intel has recently adopted a series of huge cost reduction and asset optimization strategies, and its results have been initially revealed. The company's latest announcement has completed the sale of most shares of Altera, the programmable chip business, and is expected to lower full-year cost expectations. This news immediately stimulated Intel's stock price to rise significantly on the 15th.
Intel said in April 2025 that it had sold 51% of its Altera business to private equity firm Silver Lake for a transaction of about $3.3 billion. The transaction was officially completed last Friday. It is worth noting that Intel will still retain 49% of Altera's remaining control.
And because of this cash injection, Intel has adjusted its future financial goals. The company is now reducing its financial non-GAAP operation spending target from $17 billion to $16.8 billion in 2025. Nevertheless, Intel's supervision documents also pointed out that the operating expenditure target for financial year 2026 remains at $16 billion. This shows that the cash flow from the sale of assets directly helps companies improve their operating cost structure in the short term.
Intel High-Level highly affirmed the positive impact of this wheel reform, and implemented the chief Chen Liwu's emphasis that the company is "taking the necessary actions to build a more financially rigorous semiconductor company." This sentence accurately summarizes the core of Intel's current transformation strategy, namely optimizing operations through more stringent financial management. Financial manager David Zinsner also added that their changes to "reduce operational costs, improve capital efficiency and transform non-core assets are currently having an important impact." The sale of Altera shares is the specific reality of the strategy of "changing non-core assets", and its direct benefits are now expected to be downgraded in operating costs.
The sale of Altera shares is not an Intel single action, but part of its broader, deeper reorganization strategy. Looking back at previous measures, Intel has implemented a large-scale human cutting reduction plan, cutting about 15% of employees and cutting about 50% of management levels to achieve flattening of the organization and improve decision-making efficiency. These measures aim to refocus resources on core engineering and innovation rather than redundant administration.
In terms of capital expenditure, Intel has also adopted a more cautious attitude, slowing down or canceling some new factory construction projects. For example, the construction projects in Poland and Germany have been stopped, and the progress of new factories in Ohio in the United States has also slowed down. This aims to reduce the risk of large capital investment in the early stage, avoid overinvestment and potential free capacity, and emphasize that every investment must have a clear return expectation. The company is also integrating global packaging business to optimize supply chain efficiency and reduce duplicate investment. In the internal operation, Intel has also simplified a large number of administrative processes and reduced unnecessary meetings and training projects to reduce administrative burdens and allow core employees to focus more on innovation. The company even adjusted its public policy and required employees to return to office work at least four days a week to strengthen cooperation efficiency and corporate culture.
These comprehensive reforms are in line with the goals of "reducing operation costs" and "improving capital efficiency" mentioned by Chen Liwu and David Zinsner. As for the market, the market has a positive response to Intel's series of strategic transformations. Especially after announcing the cost adjustment expectations, Intel's share price rose by more than 4% that day. The company's share price has accumulated by about 25% in 2025, showing investors' enhanced awareness of their conversion strategies and financial rules.