Why Intel is not split into two companies

According fool.com website reported today, April, well-known US stock market commentator Jim – Kramer (Jim Cramer) published such remarks views: Intel should be split in upcoming rapid growth of the business, such as data center business group, was networking and storage devices split into a company; the relatively slow growth of the PC business spin-off to another company.

However, this view is no practical significance, for the following reasons: Kramer said such a manner that there is a fundamental problem of the spin-off, the so-called “high-growth” businesses rely on the PC being developed by technology.

In most cases, the spin-off by Kramer, Intel is a $ 30 billion and nearly 300 million units of PC based technology market development, will be used as the cornerstone of its server chip business. Most of Intel’s chip business networking group is sold for the PC market, the development of products, of course, things are also selling some business group level server chips.

If Intel to split into two companies, R & D expenditure will be doubled, and that the shareholders of the so-called “rapid growth” Intel and the “slow growth” contrary to the values ​​held by some Intel.

Generally speaking, Intel chips independent production is a competitive advantage. However, to produce a continuous chip business make sense, then it needs to maximize the use of its production capacity.

However, Intel’s PC business is much smaller than its data center operations. In fact, in the present situation, Intel’s data center business group and the two things are difficult to sufficiently maintain the operation of a tip of the plant.

Thus, according to this situation, we can conclude that if Intel split into two companies, two company’s profits will be lower than this current.

According to “Financial Times” reported June 26, the chip maker Intel is considering the sale of its network security business. The report said, Intel has been working with its bankers on how to handle its network security services to discuss the sector is Intel spent $ 7.7 billion acquisition in 2011 McAfee.

One aspect of Intel spokesman was unable to comment immediately on the matter.

It is reported that Intel had said in April that it plans to lay off 12,000 people worldwide, which with its business focus moves to re-up on a microchip fabrication off.

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