Intel Shares Fall 8.8% as Former Director Urges Foundry Spin-Off

Intel shares fell 8.8% to $59.97 Monday, extending their decline over the previous two trading sessions to 34.9% as investors focused on the cost and customer prospects of the company’s foundry business.

The Monday drop outpaced declines in the broader market. The Philadelphia Semiconductor Index fell 3.37%, the Nasdaq Composite lost 1.07% and rival Advanced Micro Devices fell 7.52%. Intel had plunged 28.6% Friday.

Former Intel director Yoffie renewed his call for the company to spin off its foundry operation. He has argued that an independent foundry could ease concerns among chip designers reluctant to send business to a manufacturer that competes with them.

Intel has spent $108 billion on capital expenditures over five years as it builds manufacturing capacity. Yet no major outside customer has formally announced an order using its most advanced process.

Intel also plans to shift some Oregon factory capacity from its 18A process to the older Intel 3 process. The company uses Intel 3 for data center processors, while 18A is its leading process for attracting foundry customers.