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Jim Keller says a 'great Intel' is worth $1 trillion, company would be sold at fire sale pricing if sold now

**Abstract:** In a recent series of posts on X (formerly Twitter), Jim Keller, a renowned chip designer and current CEO of AI processor developer Tenstorrent, expressed his strong opinions regarding the potential sale or split of Intel. Keller, who previously held a lead silicon engineering role at Intel, emphasized that the company’s value lies in its historical achievements and its potential to thrive, suggesting that a sale or division of its business would be akin to a "fire sale" and a careless disposal of a company with significant future prospects. He estimated that a "great Intel" could be worth $1 trillion, underscoring his belief in the company’s potential and the importance of maintaining a clear vision and a motivated team. Keller’s comments come in the wake of recent rumors suggesting that Broadcom, a semiconductor giant, might be interested in acquiring Intel’s products business. Additionally, there are discussions about forming a joint venture for Intel’s foundry unit, potentially involving TSMC, Broadcom, Qualcomm, and other tech companies. This joint venture would aim to inject capital into Intel Foundry, which has been struggling to secure orders from major clients and is currently losing money. However, such a move would also mean that Intel would relinquish its status as an integrated device manufacturer (IDM), which has historically been one of its core strengths, providing complete control over its product design and manufacturing processes. One commenter proposed an alternative scenario where Intel could become a private company with the support of American investors, allowing for a more focused and strategic reinvention of the company. Keller acknowledged that while this would be a challenging process, it is feasible with the right goals and team dynamics. He highlighted the resilience and capability of humans when driven by a compelling vision and a supportive environment. The proposed sale or joint venture faces significant political and operational hurdles. The current U.S. government is unlikely to endorse the transfer of Intel’s manufacturing facilities to foreign entities, given the strategic importance of domestic semiconductor production. Moreover, Intel’s foundry unit has yet to demonstrate profitability, making it a less attractive investment for potential partners. On the other hand, Broadcom’s interest in Intel’s products division could be driven by the desire to gain access to Intel’s CPU capabilities and world-class design teams. However, a change in ownership would terminate Intel’s cross-licensing agreement with AMD, potentially leading to a loss of access to critical innovations unless a new agreement is negotiated. Keller’s views reflect a broader industry sentiment that Intel’s challenges are not insurmountable and that the company’s long-term potential remains strong. His emphasis on maintaining a clear vision and a motivated team aligns with the strategic focus needed to navigate the complex landscape of semiconductor innovation and competition. The debate over Intel’s future is likely to continue, with stakeholders and industry experts weighing the pros and cons of various strategic options, including potential partnerships, divestitures, and internal restructuring. **Key Elements:** - **Jim Keller**: Ex-Intel lead silicon engineer and current CEO of Tenstorrent. - **Intel**: Semiconductor company facing potential sale or split of its business. - **Broadcom**: rumored to be interested in acquiring Intel’s products business. - **TSMC**: Potential partner in a joint venture for Intel’s foundry unit. - **Intel Foundry**: Struggling unit that has yet to secure major orders and is losing money. - **U.S. Government**: Unlikely to support the transfer of Intel’s manufacturing to foreign entities. - **AMD Cross-Licensing Agreement**: Terminates with a change in ownership, potentially affecting access to innovations. - **Private Company Scenario**: Suggested by a commenter as a viable alternative for strategic reinvention. - **Strategic Focus**: Emphasis on maintaining a clear vision and motivated team to unlock Intel’s full potential.

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Jim Keller says a 'great Intel' is worth $1 trillion, company would be sold at fire sale pricing if sold now | Trending Stories | HyperAI