Intel announced a series of strategic changes aimed at reversing recent losses and reviving its position in the semiconductor market. The company confirmed the spin-off of its chip manufacturing business, Intel Foundry, which will become an independent subsidiary with its own board of directors and separate financial results.
The move represents a significant shift for Intel as it seeks to streamline its operations and improve efficiency. The company also revealed plans to temporarily halt factory construction in Poland and Germany, while reducing its global real estate footprint. This puts a halt to investments that had been confirmed in early 2024, with plans remaining active in Germany and Poland.
These strategic changes are apparently crucial to address the difficulties the company has encountered in recent years, including significant financial losses and technical problems with its latest generation CPUs. Intel has meanwhile received significant support from the US government, with up to $3 billion in funding for the production of chips for the military, the subject of a recent meeting with the US government, which wants the chips in the United States.
Intel is also betting on its new 18A chipmaking process, which it expects to help improve efficiency and reduce losses. However, recent reports suggest that early tests of this process have been unsuccessful, raising concerns about its implementation. In the meantime, Intel remains confident in its ability to weather this difficult time and build a stronger future. CEO Pat Gelsinger has called this transformation the most significant in the last four decades, stressing the importance of these changes for the company’s future.
Intel’s restructuring and spin-off of its chip manufacturing business represents a crucial turning point for the company. It remains to be seen whether these moves will be enough to reverse the negative trend and return Intel to its leadership position in the semiconductor market. The success of the new 18A manufacturing process and the ability to attract strategic partners will be key factors in determining the company’s future. Yet the fact that the PS6 ended up with AMD does not seem like a good sign.
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