At the heart of Intel's malaises is its loss-making FAB divisionIf Intel can succeed in divesting this segment, it could swiftly return to profitabilityThese fabrication facilities not only produce chips for Intel but also serve as foundries for other companiesCompeting against industry titans like TSMC and Samsung, Intel faces a daunting uphill battle.

Intel's FAB division grapples with two core issuesFirst, many of its major clients, including Apple, Nvidia, Qualcomm, and AMD, see Intel as a competitor and are reluctant to outsource manufacturing to the company

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Second, Intel’s delay in advancing its Fab 42 project in 2014 allowed competitors like TSMC to leapfrog ahead.

With TSMC under the leadership of Liang Mong-song, that company implemented an aggressive work schedule that pushed its technology advancements to achieve a 10-nanometer process node within just two and a half yearsIn contrast, Intel barely managed to work 30 hours a week in the same period and took nearly a decade to stabilize its 10-nanometer yieldsThis performance gap illustrates the competitive disadvantages Intel is currently facing.

Recognizing the urgency of the situation, the U.S. government has been proactive in supporting IntelSubstantial subsidies have been offered, and the latest lithography machines from ASML are prioritized for IntelWith Intel being the only semiconductor firm in the U.S. possessing true technological competitiveness, these efforts underscore the importance placed on strengthening domestic capabilities, even as TSMC and Samsung establish operations on American soil.

In seeking a path to survival, it seems Intel must consider spinning off its FAB unitHowever, offloading this division to one of its primary competitors, like TSMC or Samsung, would be off the tableInstead, it would likely seek a domestic company capable of acquiring it or forming a joint ventureQualcomm appears to be under consideration for this crucial task.

A full acquisition by Qualcomm would not address the core issues at playMerely transferring ownership without reforming the business strategy would yield little improvement

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