Intel's ambitious U.S. manufacturing expansion now in question

Driving the news: Intel is said to be kicking around ideas with Goldman Sachs and Morgan Stanley, including a sale or spinoff of its manufacturing unit, per Bloomberg.

• It's also considering smaller moves like reining in project expansion plans, people familiar with the situation told Bloomberg.
• "We don't have a comment on this," Intel's director of corporate comms Penny Bruce says in an email to Axios on the reported talks with advisers.
• When asked whether the status of its manufacturing projects had changed, she declined to comment beyond an April 15 update.

The big picture: Intel reported a $1.61 billion net loss last quarter, complicating the company's ambitions to spend tens of billions on new factories to make chips for itself and outside customers.

• One problem, it's not clear whether any customers have lined up.
• Up to $8.5 billion in direct funding and up to $11 billion in loans pledged to the company through the CHIPS Act to advance manufacturing projects is partly dependent on the company hitting production milestones.

Between the lines: Discussions around a new direction reportedly gained more urgency following that earnings report at the start of the month.

• Sales for Intel's data center business, once its most profitable, fell 3% to $3 billion as industry demand has shifted to AI processors (Nvidia's wheelhouse).

• The company also said it would lay off over 15% of its staff this year to help reduce costs.

Zoom out: Intel has been floundering for over a decade, and some of the larger options reportedly being discussed would unwind core parts of CEO Pat Gelsinger's turnaround plans centered on a recommitment to manufacturing.

Intel's stock's been moving in the wrong direction. It's down nearly 60% this year and 28% just this month — failing to capture the momentum other chip stocks have enjoyed.

• It's little surprise that investors cheered today's the news, driving the company's shares up 9.5%.