Intel shares rise as board member’s exit might be due to spin-off plan: TF

Lip-Bu Tan’s resignation from his position on Intel’s (NASDAQ:INTC) board of directors on Aug. 19 might be related to his involvement in the company’s possible spin-off plan, according to a post on X this morning by TF International Securities analyst Ming-Chi Kuo.

“This is a personal decision based on a need to reprioritize various commitments and I remain supportive of the company and its important work,” Tan said, in an SEC filing.

However, Kuo posted that Tan’s departure from the board would allow him to join Intel’s spin-off committee.

Intel’s shares spiked 9% by mid-morning trading on Friday.

“I’m told that one of the main reasons for Lip-Bu Tan’s departure from Intel’s board of directors is to join the spin-off committee,” Kuo said. “This move is to ensure that he can help Intel plan the potential spin-off of chip design and foundry operations from a neutral and objective standpoint.”

“There have long been rumors that Intel may spin off its chip design and foundry businesses,” Kuo added. “While no decision has been made, this is the closest moment Intel has come to a spin-off.”

Intel is considering the split, or sale, of its chip foundry unit, and is apparently in the early stages of discussions with the company’s longtime bankers, Morgan Stanley (MS) and Goldman Sachs (GS), on potential options.