Intel Corporation has announced a series of changes aimed at enhancing efficiency, competitiveness, and profitability. This was reported by the company’s CEO, Pat Gelsinger.
Independence for Intel Foundry
Intel will spin off its AI-related integrated circuit manufacturing 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 a clearer separation and independence of the subsidiary from the rest of the corporation.
Intel Foundry’s Partnership with Amazon Web Services
Intel has announced an expansion of its strategic collaboration with Amazon Web Services (AWS), which includes joint investment in custom chip development.
Intel Foundry will produce AI chips based on the new 18A process for AWS. Close collaboration is expected in other projects, including the creation of a special Xeon 6 chip on Intel 3.
Grant from the US
The company announced receiving up to $3 billion in direct funding from the US government under the Secure Enclave program. It is intended to ensure the expansion of reliable production of advanced semiconductors for the government.
Efficient Production
Intel Foundry has increased its capacity in Europe through its plant in Ireland, the company’s leading European hub. The corporation will suspend projects in Poland and Germany for approximately two years.
In Malaysia, the construction of a new factory is planned to be completed, with the launch “to occur in accordance with market conditions.”
“Taken together, these changes are critically important steps forward as we create a compact, simple, and efficient Intel,” the statement from Gelsinger reads.
The company’s shares rose by 6% following the announcement of the upcoming changes.
In early August, Intel announced the layoff of 15% of its workforce, or about 15,000 employees, amid lagging in the AI race. The firm reported a $1.6 billion loss for the second quarter.
Later, it became known that SoftBank was in talks with Intel regarding AI chip production to compete with Nvidia, but abandoned the plan. The American manufacturer failed to meet the Japanese group’s requirements.
Intel lost the contract to develop PlayStation 6 chips in 2022, Reuters found. Winning over AMD could have brought billions in revenue.
It was reported that Intel declined to purchase a 30% stake in OpenAI seven years ago.