In the face of financial challenges, Intel Corporation is reportedly exploring the possibility of spinning off or selling its foundry division, which manufactures chips for other companies. This news comes as Intel's stock has dropped a staggering 60% this year, making it one of the poorest performers within the S&P 500 index. The tech giant suffered a second-quarter loss of $1.6 billion and is expected to incur another $1 billion loss this quarter, according to analysts.

Shares of Intel experienced a boost of nearly 8% following Bloomberg's report, which cited insider sources familiar with the matter. While an Intel spokesperson declined to comment, it is believed that the discussions regarding the future of the foundry business are ongoing. Multiple options are expected to be presented at a board meeting scheduled for September, indicating that any potential move may not happen immediately.

Intel's foundry business, responsible for producing chips on behalf of external companies, could be a valuable asset in the market. The chip giant's recent struggles have resulted in a decline in stock value, with shares reaching their lowest level since 2013 after disappointing quarterly results were accompanied by an announcement of a 15% reduction in the workforce.

Furthermore, reports have emerged suggesting that Intel's plans to construct two new chip fabrication facilities in Germany might face obstacles. These developments have further impacted Intel's market value, leaving the company trailing behind other major chip manufacturers. This is a far cry from 2021 when CEO Pat Gelsinger took over, propelling Intel far ahead of competitors like Nvidia.

The potential spin-off or sale of the foundry division could serve as a strategic move to alleviate some of Intel's financial burdens and refocus its resources on core business areas. However, no official statements have been made by the company regarding this matter, leaving investors and stakeholders eagerly awaiting the outcome of the September board meeting.

As Intel navigates these difficult times amidst fierce competition and rapidly evolving technology markets, the decision regarding the future of its foundry division will be pivotal in shaping the company's path forward.