Intel Shares Slide on Foundry Doubts

Investors question whether Intel's chip manufacturing business can win outside customers at a cost that justifies its spending.

Updated on Nov. 3, 2026 in Semiconductors

Flat-color editorial illustration of a single silicon wafer divided into a precise grid of rectangular die, one die lifted slightly out of line, on a dark matte surface. — Intel shares fell 8.8% to $59.97 Monday, extending a 34.9% two-session slide as investors question whether its foundry business can win outside customers and former director David Yoffie renews calls for a spin-off. AI Illustration. Upload story photo >

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Intel shares fell 8.8% to $59.97 on Monday, extending a steep slide that has cut the stock 34.9% over the previous two trading sessions. Former Intel director David Yoffie renewed his call for Intel to spin off its foundry operation into an independent company.

Why it matters

Investors are weighing whether Intel's contract-manufacturing business can win outside customers at a cost that justifies heavy spending. An independent foundry could ease concerns among chip designers reluctant to send work to a manufacturer that competes with them. This remains a proposal, not a decision.

Intel's share price data shows a two-session decline of 34.9%, measured against a Monday drop of 3.37% in the Philadelphia Semiconductor Index. The company has spent $108 billion on capital expenditures over five years, but no major outside customer has formally committed to its most advanced foundry process.

The players

Intel

Intel is the largest U.S. x86 processor maker, operating chip design and a foundry business that manufactures chips for outside customers.

David Yoffie

David Yoffie is a Harvard Business School professor and former Intel director who has advocated separating Intel's foundry operation.

Advanced Micro Devices

Advanced Micro Devices is a U.S. chip designer that competes with Intel in x86 processors and AI accelerators.

The details

Intel's foundry operation manufactures chips designed by other companies, a business that would become a separate company under the proposed spin-off. Intel plans to shift some Oregon factory capacity from its 18A process, its most advanced manufacturing technology, to the Intel 3 process, an older node. Capital expenditures are the large, recurring investments a chipmaker makes in fabrication plants and equipment, which must be recovered through customer orders.

Friday: Intel shares plunged 28.6%.
Monday: Intel shares fell 8.8% to $59.97, while the Philadelphia Semiconductor Index fell 3.37%.

The Tech Race

Intel's share decline is being measured against the Philadelphia Semiconductor Index, which fell 3.37% Monday, a reference point that separates company-specific pressure from sector-wide selling. Intel's foundry strategy is now being judged against its own $108 billion five-year capital spending program and the question of whether outside customers will commit to its most advanced process.

The spin-off is a proposal and has no set timeline, so no change to Intel's products or pricing is announced. Anyone holding Intel stock or tracking chip supply chains should watch whether the company responds to calls for a separate foundry business.

The takeaway

The central question is whether Intel's foundry can attract major outside customers to justify its spending, and a spin-off would be one way to change that calculus. Watch for any formal customer announcement on Intel's most advanced process, since none has been made yet.