Due to the weak PC market, Intel plans to cut thousands of employees to cut costs, which may be announced together with the third quarter financial report on October 27 as soon as possible. There is also news in the market that Intel will split chip design and chip manufacturing.

Vivek Arya, an analyst at Bank of America, was worried about Intel's core strategy IDM2.0, competitiveness and financial risks, and believed that Intel could not regroup even if it cut jobs and split its departments.

Arya said that layoffs and division are necessary measures for Intel to try to reduce costs. It is estimated that it can reduce the marketing and sales expenses by 20% next year, which may help Intel increase its revenue by $1.3 billion next year, and help the company fulfill its commitment of about $6 billion in dividends.

However, Arya is still worried about Intel's core strategy IDM2.0, competitiveness and financial risks.

She said that some of Intel's fundamental weaknesses cannot be ignored. No matter how many people work in this semiconductor giant, these weaknesses still exist, including Intel's OEM business is far behind TSM-US, and its high dependence on PC business.

Gartner, a market research agency, recently announced that the global PC shipments in the third quarter dropped by 19.5%, the worst quarterly performance since 1995. IDC announced that the PC sales in the third quarter fell by 15% annually, which severely hurt Intel's business.

Arya is not totally negative about Intel. She mentioned that as the Biden government wants to revive the prosperity of the local semiconductor industry and solve the long-term problem of excessive dependence on Asia, Intel is the only American supplier that can approach this goal in the next few years.