Intel CEO Robert Swan speaks at the Rakuten Optimism event in Yokohama, Japan, on July 31, 2019.
Tomohiro Ohsumi | Getty Images
Third Point, the hedge fund led by Dan Loeb, is urging Intel’s board of directors to hire an investment adviser to explore “strategic alternatives” after the chipmaker lost market share to TSMC, Samsung and AMD.
Among the considerations should be divesting of “failed acquisitions,” Loeb wrote in a letter to Intel’s board on Tuesday. CNBC viewed a copy of the letter. Third Point, known for its activism, recently took a significant stake in Intel.
Intel shares rose 6% after reports of the letter surfaced.
“The loss of manufacturing leadership and other missteps have allowed several semiconductor competitors to leverage TSMC’s and Samsung’s process technology prowess and gain significant market share at Intel’s expense,” Loeb wrote.
Even with Tuesday’s rally, Intel shares are down 17% in 2020.
–CNBC’s Leslie Picker contributed to this report.