Intel announced the creation of an independent subsidiary, Intel Foundry, to tackle losses and implement strategic changes.
Formation of Intel Foundry
Intel CEO Pat Gelsinger announced on Monday that the chipmaking operation will convert into an autonomous operation with greater independence from the parent company.
Production Restructuring
Intel Foundry will operate as a stand-alone business with its own board. The production will start separate financial reporting. The company will continue construction of plants in Arizona, New Mexico, Ohio, and Oregon, while the Malaysia plant will be completed but will only become operational as needed. Work on factories in Germany and Poland will be paused for two years.
Impact on the Company's Future
This restructuring is expected to positively impact Intel's financial standing. The company hopes to reduce operational losses and return to profitability. Intel also announced the layoff of 15,000 employees and plans to sell part of its stake in Altera Corp. Additionally, Intel plans to invest in joint semiconductor development for artificial intelligence with AWS.
These changes are aimed at strengthening Intel's market position and ensuring the company's long-term stability.
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