As Intel prepares for a crucial board meeting in mid-September, reports reveal ongoing adjustments to its corporate strategy in response to a pressing liquidity crisis. Recent speculation suggested a potential split into two distinct companies focused on chip development and manufacturing, as reported by Bloomberg. However, a new Reuters update indicates that Intel has paused these plans and is instead exploring alternative measures to bolster its financial reserves.

The tech giant is aiming to enhance its cash flow to support ongoing factory construction and advance its production capabilities to compete globally. In tandem with these strategic shifts, Intel is set to launch its latest processor, the Lunar Lake, designed with an AI engine, which will be available for pre-order starting today and officially released on September 24.

Lunar Lake, Intel’s most advanced chip for Windows-based personal computers, was developed under the leadership of an Israeli team and manufactured at TSMC facilities in Taiwan, a competitor of Intel. Notable PC manufacturers, including Samsung, Lenovo, Asus, Acer, LG, and MSI, will offer Lunar Lake-equipped computers with a complimentary upgrade to Copilot Plus, a suite of Microsoft’s AI applications, beginning in November.

Zohar Tsab, Vice President of Intel’s Personal Computing Group, emphasized the strategic foresight of investing in AI technology three years ago, stating, “We recognized the enormous potential of artificial intelligence in personal computers.” He highlighted the collaborative efforts of hundreds of Israeli engineers who contributed to the Lunar Lake project, overseeing everything from product definition to architectural design.

The launch comes at a critical time as the fourth quarter is traditionally Intel’s strongest period due to back-to-school and holiday shopping. Intel seeks to reaffirm its leading position in the core processor market amid rising competition from AMD and Qualcomm, both of whom are making significant inroads into personal computing. While recent reviews of competing chips have been mixed, Intel’s new offering is seen as a vital step in maintaining its market position.

In addition to the Lunar Lake launch, Intel is reportedly considering the sale of Altra, a programmable chip company acquired nine years ago for $16.7 billion. Following a strategic review, Intel aims to spin off Altra, which has not fully integrated into its core operations. The company plans to either take Altra public or sell it outright to generate cash for its production upgrades.

Furthermore, Intel is expected to make adjustments to its factory construction plans, which involve significant investment. The company has delayed the construction of a second clean room at its Kiryat Gat facility in Israel and may also postpone or cancel plans for a new factory in Magdeburg, Germany.

Image credit: Intel office in Haifa, Eran Yoffi Cohen