Intel’s competitiveness continues to be lost, and the radical hedge fund Third Point LLC suggests that it may be possible to split the manufacturing business through the establishment of a joint venture. However, analysts doubt whether the independent manufacturing business will work.

Wells Fargo published a research report that pointed out that Third Points's views are indeed reasonable, but it is hard to believe that Intel will completely abandon the manufacturing business. It may take several generations for Intel to gradually entrust core PCs and data center CPUs to external foundries, which involve quite complex issues.

Wells Fargo does not believe that Intel's entry into other fields can change the current predicament.

RBC Securities pointed out that Intel may be allowed to set up joint ventures with TSMC and Samsung Electronics to use their foundry capabilities. However, TSMC and Samsung are unlikely to build factories specifically to meet Intel's mass production needs. The establishment of a joint venture may help, but it cannot solve Intel’s core problem: manufacturing.

RBC warned that if Intel decides to entrust manufacturing operations to TSMC or Samsung, its gross profit margin may be cut by more than 30%.

Intel plans to update its operating strategy in January, which may be announced together with the fourth quarter financial report or hold a separate briefing.