Intel moves to spin out foundry business, inks AI chip deal with AWS2024-09-17 06:26 by DanielaTags: Intel, Amazon
Intel is spinning off its chipmaking business as part of its plans to reverse billions in losses and a tumbling stock price. In an announcement on Monday, Intel CEO Pat Gelsinger said the Intel Foundry will become an independent subsidiary with "clearer separation and independence" from Intel. With the change, the Intel Foundry will have its own operating board and report its financial earnings separately from Intel. Intel will also stop work on the factories it's building in Poland and Germany for two years "based on anticipated market demand." The company is still moving forward with its plants in Arizona, Oregon, New Mexico, and Ohio, however. Additionally, Intel plans on selling part of its stake in Altera, the programmable chip company it acquired in 2015. It will also cut around two-thirds of its global real estate footprint. Another big news is that Intel's struggling chip-making business got a boost Monday from a high-profile client: Amazon. Intel Foundry and Amazon Web Services will coinvest in a custom chip design for the latter and "announced a multi-year, multi-billion-dollar framework," according to a release. Earlier in the day Intel said it would receive up to $3 billion in funding under the CHIPS and Science Act to manufacture chips for the military. Read more -here-
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