This teaching case study delves into Intel's corporate strategy and corporate venturing initiatives as integral components of strategic renewal within the semiconductor industry. The case draws insights from recent shareholder meetings and the visionary leadership of CEO Pat Gelsinger. Intel's corporate strategy unfolds as a dynamic response to the challenges posed by intense industry competition. The case study critically examines potential misalignments between corporate growth, short-term profitability, and shareholder value, offering a nuanced exploration of strategic decision-making in a highly competitive landscape.

Intel strategically renews its trajectory by aggressively leveraging corporate venturing, employing a dual strategy that combines internal and external innovation. Through external venturing, facilitated by Intel Capital, its influential corporate venture capital (CVC) unit, Intel invests in and partners with external startups to access innovations, diversify its portfolio, and enhance learning. Intel Capital focuses on early-stage startups in key domains like silicon, frontier, devices, and cloud, providing them with resources, technology, and expertise to support growth and success. Concurrently, internal venturing is driven by the Emerging Growth and Incubation (EGI) Group, a separate entity within Intel since 2018. EGI incubates businesses with billion-dollar-plus potential, fostering internal entrepreneurship and generating organic growth in areas like robotics, autonomy, compute, and healthcare. The cultivation of an intrapreneurial culture at Intel is also marked by employee venturing, which brings benefits such as new knowledge sources and market expansion but introduces challenges like resource conflicts and reputational risks, prompting Intel to align its corporate venturing strategy with its objectives for innovation and competitive advantage while navigating the complexities of strategic renewal.

The case study is complemented by a valuable data appendix, shedding light on Intel’s business units and external growth modes, including M&As, CVCs, and employee ventures. Encouraging exploration of this data, the case invites a critical analysis to enhance understanding of Intel’s corporate strategy for growth.

Michel Gschwind, a scientist formerly working in the private research centre IMRA Europe (the R&D unit of the Aisin Seiki Group), launched an employee venture (or corporate spinout/spinoff), ARECO, to exploit technology developed at his previous corporate employment. This technology, nebulization, consists of fragmenting liquids (water, perfume or biocide) via a piezoelectric system to obtain an extremely fine mist. Operating with a license on this technology, Michel explored solutions in new product-markets as he grew his business to find new applications for corporate technology. As ARECO rapidly expanded Michel came to appreciate the benefits of his entrepreneurial venture. The negotiations with the parent company were not always easy, but the results have surpassed any of his predictions when he launched ARECO. Not only could he leverage his patents and technology, but he could also build a new culture of innovation. The case addresses the issues of the initiation and conduct of the firm-employee negotiation process when launching spinouts based on corporate proprietary knowledge. It highlights corporate spinout as a mechanism that helps overcome organisational inertia and increase employees’ propensity to explore new markets and technological paths. Finally, it emphasises the influence of former experiences and career choices of the founder when he decides to leave a stable job to engage in an entrepreneurial venture. Although ARECO has shown fast growing success, Michel is now facing critical decisions to ensure the venture's long-term success and enduring competitive advantage in more mature markets.