Intel splits off foundry business — new dawn for chip giant as it announces major transformation plans
Intel Foundry Service will get more financial transparency and flexibility
· TechRadarNews By Craig Hale published 18 September 2024
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 Intel’s main goals, enhancing its foundry operations, cutting costs and focusing on its core x86 technology.
Gelsinger’s 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 Intel’s CEO, however a separate operating board will be established.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsors