Intel has announced a series of changes aimed at improving efficiency, competitiveness, and profitability. This was shared by the company’s CEO Patrick Gelsinger.
Intel Foundry’s Independence
Intel will spin off its AI-related chip production business into an independent subsidiary.
Intel Foundry will have its own board of directors and the ability to attract external capital. This move will provide clients and suppliers with clearer separation and independence from the rest of the corporation.
Intel Foundry Partnership with Amazon Web Services
Intel has also expanded its strategic partnership with Amazon Web Services (AWS), which includes joint investment in custom chip development.
Intel Foundry will manufacture AI microchips based on the new 18A process for AWS. Close collaboration on other projects is expected, including the creation of the special Xeon 6 chip on Intel 3.
U.S. Subsidy
Intel reported receiving up to $3 billion in direct funding from the U.S. government under the Secure Enclave program. The funding is aimed at expanding secure advanced semiconductor manufacturing for the government.
Efficient Production
Intel Foundry has increased capacity in Europe through its Ireland facility, which serves as the company’s leading European hub. The company will pause projects in Poland and Germany for about two years.
A new factory in Malaysia is expected to be completed, with the launch scheduled “according to market conditions.”
“In total, these changes are critically important steps forward as we create a more compact, simple, and efficient Intel,” said Gelsinger in the company statement.
Intel’s stock rose by 6% following the announcement of these upcoming changes.
In early August, Intel announced layoffs of 15% of its workforce, or about 15,000 employees, amid a slowdown in the AI race. The company reported a $1.6 billion loss for the second quarter.
It later emerged that SoftBank had been in talks with Intel regarding AI chip production to compete with Nvidia, but eventually abandoned the plan. The American manufacturer was unable to meet the requirements set by the Japanese conglomerate.
Intel also lost the contract to develop chips for PlayStation 6 in 2022, according to Reuters. Winning the contract could have brought billions of dollars in revenue.
It’s worth recalling that Intel also turned down the opportunity to purchase a 30% stake in OpenAI seven years ago.
Intel has announced a series of changes aimed at improving efficiency, competitiveness, and profitability. This was shared by the company’s CEO Patrick Gelsinger.
Intel Foundry’s Independence
Intel will spin off its AI-related chip production business into an independent subsidiary.
Intel Foundry will have its own board of directors and the ability to attract external capital. This move will provide clients and suppliers with clearer separation and independence from the rest of the corporation.
Intel Foundry Partnership with Amazon Web Services
Intel has also expanded its strategic partnership with Amazon Web Services (AWS), which includes joint investment in custom chip development.
Intel Foundry will manufacture AI microchips based on the new 18A process for AWS. Close collaboration on other projects is expected, including the creation of the special Xeon 6 chip on Intel 3.
U.S. Subsidy
Intel reported receiving up to $3 billion in direct funding from the U.S. government under the Secure Enclave program. The funding is aimed at expanding secure advanced semiconductor manufacturing for the government.
Efficient Production
Intel Foundry has increased capacity in Europe through its Ireland facility, which serves as the company’s leading European hub. The company will pause projects in Poland and Germany for about two years.
A new factory in Malaysia is expected to be completed, with the launch scheduled “according to market conditions.”
“In total, these changes are critically important steps forward as we create a more compact, simple, and efficient Intel,” said Gelsinger in the company statement.
Intel’s stock rose by 6% following the announcement of these upcoming changes.
In early August, Intel announced layoffs of 15% of its workforce, or about 15,000 employees, amid a slowdown in the AI race. The company reported a $1.6 billion loss for the second quarter.
It later emerged that SoftBank had been in talks with Intel regarding AI chip production to compete with Nvidia, but eventually abandoned the plan. The American manufacturer was unable to meet the requirements set by the Japanese conglomerate.
Intel also lost the contract to develop chips for PlayStation 6 in 2022, according to Reuters. Winning the contract could have brought billions of dollars in revenue.
It’s worth recalling that Intel also turned down the opportunity to purchase a 30% stake in OpenAI seven years ago.
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