Subj : Intel splits off foundry business  new dawn for chip giant as it
To   : All
From : TechnologyDaily
Date : Wed Sep 18 2024 18:15:05

Intel splits off foundry business  new dawn for chip giant as it announces 
major transformation plans

Date:
Wed, 18 Sep 2024 17:00:00 +0000

Description:
The most significant transformation of Intel in over four decades includes 
$10 billion in cost cutting and foundry business spinoff.

FULL STORY
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Intel has announced plans to establish a new Intel Foundry Services (IFS) 
spinoff  with the foundry business set to become its own standalone 
subsidiary. 

The announcement , made by company CEO Pat Gelsinger, is said to align with 
three of Intels main goals, enhancing its foundry operations, cutting costs 
and focusing on its core x86 technology. 

Gelsingers news also serves as confirmation of decisive action made by the 
company following its second-quarter earnings call. Intel Foundry Services 
subsidiary 

In its most recent three-month period, Intel reports $12.8 billion in 
revenue, marking a minor 1% decrease over the same period of the preceding 
year. 

Announcing a major $10 billion cost-reduction plan, Gelsinger stated: Our Q2 
financial performance was disappointing, even as we hit key product and 
process technology milestones. 

Splitting off its foundry business will enable the newly formed IFS to have 
greater financial transparency as well as more flexibility. Gelsinger 
summarized the change, provides our external foundry customers and suppliers 
with clearer separation and independence from the rest of Intel. 

No changes have been made to the leadership team, who continue to report to 
Intels CEO, however a separate operating board will be established. 

In the announcement, Gelsinger also touched upon further changes that will 
apply to Intel in order to address many of the concerns raise following the 
most recent quarter. 

Despite pausing facility projects in Germany and Poland, Intel will continue 
to build in Arizona, Oregon, New Mexico and Ohio in order to expand its US 
manufacturing footprint. These projects are backed by billions of US dollars 
as part of the CHIPS Act . 

Gelsinger thanked Intels workers for their understanding, revealing the true 
scale of the change: As Ive said before, this is the most significant 
transformation of Intel in over four decades. Not since the memory to 
microprocessor transition have we attempted something so essential. More from 
TechRadar Pro Weve rounded up a list of the best processors Fancy an upgrade? 
Here are the best business laptops Intel has sold its stake in Arm  what 
could this mean for future releases?



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Link to news story:
https://www.techradar.com/pro/intel-splits-off-foundry-business


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