Intel Corp., a technology giant with a storied 56-year history, is facing one of the most challenging periods in its existence. The company is currently in talks with investment bankers to explore various options to navigate through this difficult time, according to sources familiar with the matter.

One of the potential scenarios being discussed is a split of Intel’s product-design and manufacturing businesses. Additionally, there are considerations about which factory projects could potentially be scrapped. Morgan Stanley and Goldman Sachs Group Inc., Intel’s longstanding bankers, are providing advice on these possibilities, which may also involve potential mergers and acquisitions.

The urgency of these discussions has increased following a disappointing earnings report that led to a significant drop in Intel’s stock price, hitting its lowest level since 2013. The company’s board is expected to review and evaluate the various options presented in these discussions during a meeting scheduled for September.

Despite the challenging circumstances, Intel shares saw a slight increase in early trading on Friday, reaching $20.51. However, the stock has declined by 60% this year, in stark contrast to the 20% gain seen in the Philadelphia Stock Exchange Semiconductor Index.

While no major decisions are imminent and discussions are still in the early stages, sources caution that Intel is under pressure to take action. CEO Pat Gelsinger, who returned to lead the company in 2021, faces the daunting task of orchestrating a much-needed turnaround amid dwindling sales and mounting losses.

One potential option on the table is the separation or sale of Intel’s foundry division, which focuses on manufacturing chips for external customers. This move would mark a significant shift in strategy for Gelsinger, who had placed great emphasis on the foundry business as a key element in revitalizing Intel’s position in the chip market.

However, before resorting to such drastic measures, Intel may opt for less disruptive steps, such as postponing expansion plans. The company has already engaged in project financing deals with Brookfield Infrastructure Partners and Apollo Global Management.

Gelsinger’s ambitious plans to revitalize Intel’s technological edge have faced setbacks, leading to job cuts, capital spending reductions, and the suspension of the company’s dividend. The CEO acknowledged the challenges during a recent investor conference, acknowledging the market’s negative response to the company’s recent actions.

The departure of director Lip-Bu Tan, a semiconductor industry veteran, further adds to the instability within Intel’s leadership. Tan’s exit leaves a void in the boardroom, depriving the company of valuable industry knowledge and experience.

As Intel grapples with these internal challenges, its market value has slipped to $86 billion, causing it to fall out of the top 10 largest chipmakers globally. The company’s performance pales in comparison to industry peers like Nvidia Corp., which is on track to double Intel’s revenue by 2024.

Despite the hurdles ahead, Gelsinger remains committed to steering Intel through this turbulent phase. The company’s ability to adapt and innovate will be crucial in determining its future success in a rapidly evolving tech landscape.

This article is based on information sourced from Bloomberg and reflects the current state of affairs at Intel. Stay tuned for updates as the company navigates through this critical juncture in its history.