In a note to employees on Sept. 16, 2024, Intel CEO Pat Gelsinger outlined several strategic changes:
1) establishing Intel Foundry as an independent subsidiary,
2) expanding collaboration with Amazon Web Services (AWS) to produce custom chips,
3) securing $3 billion in U.S. government funding for the Secure Enclave program,
4) pausing manufacturing expansion in Poland and Germany and focusing on the Irish facility,
5) streamlining the product portfolio and reorganizing business units,
6) reducing the workforce and optimizing global real estate, and
7) divesting part of its stake in Altera to improve liquidity.
Gelsinger announced the establishment of Intel Foundry as an independent subsidiary within Intel to increase transparency and flexibility for future growth and funding. He also outlined a more efficient capital plan, including adjustments to manufacturing expansion projects in Europe and Asia, while maintaining commitments to U.S. manufacturing investments. Intel will pause manufacturing expansion in Poland and Germany for two years due to market demand, focus its European operations on the Irish facility as the primary hub, and delay the startup of its new packaging factory in Malaysia.
Additionally, Intel is streamlining its product portfolio and reorganizing certain business units to enhance efficiency and innovation. This includes moving Edge and Automotive businesses into the Client Computing Group (CCG) and integrating the Software and Incubation business into core business units. Gelsinger reaffirmed the company’s commitment to financial performance, workforce reductions, and strategic divestitures to position Intel for future growth and success.
Link to article:
https://www.intel.com/content/www/us/en/newsroom/news/foundry-momentum-progress-plan.html#gs.fed1zq
Credit: Intel