By Max A. Cherney, Jeffrey Dastin and Stephen Nellis SAN FRANCISCO (Reuters) -Intel's new chief executive is exploring a big change to its contract manufacturing business to win major customers, two people familiar with the matter told Reuters,

In addition, Intel faces external pressures. Earlier this year, the U.S. government was reportedly pressing hard for Intel to create some kind of joint venture with TSMC, but the Taiwanese chip giant ended months of speculation in April when it explicitly ruled out such a move.

Key Takeaways A report new Intel CEO Lip-Bu Tan is considering costly changes to the company's chip manufacturing business rattled shares this week.The stock rallied from a multi-month rangebound trading floor throughout June but has run into selling pressure in early July near the respected 50-week moving average.