Intel’s Big Turnaround: Spinning Off Chipmaking Business to Revitalize Growth
Intel's Strategic Spin-Off
Intel's big plan involves spinning off its chipmaking business, aiming to reverse billions in losses. Announced by CEO Pat Gelsinger, this decision transforms the Intel Foundry into an independent subsidiary, promising a clearer separation and independence from Intel.
Operational Changes and Market Response
- The Intel Foundry will operate with its own board.
- Financial outcomes will be reported separately.
- Construction in Poland and Germany will pause for two years.
- Operations in Arizona, Oregon, New Mexico, and Ohio will continue.
Additionally, Intel will cut two-thirds of its global footprint and plans to sell part of its stake in Altera. Recently, the Biden administration awarded Intel up to $3 billion for military chip production.
Future Prospects
These adjustments are crucial to restoring Intel’s position as a leading chipmaker amid significant challenges. Despite the recent $1.6 billion losses in the first quarter of 2024, Gelsinger believes in a strong comeback. Notably, the new 18A chipmaking process will be introduced, although preliminary tests have faced setbacks.
Gelsinger emphasized, “This is the most significant transformation of Intel in over four decades.”
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.