Intel, a leading chipmaker, has made some important announcements in its effort to turn things around. The company is planning to create a new independent subsidiary called Intel Foundry, which will focus on making chips for other companies.
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Intel Foundry will have its own operating board and leaders, but will remain part of Intel. The company is also putting some of its chip-making projects on hold for two years because it doesn’t expect to need as many chips yet.
Despite this, Intel Foundry has made a big win by partnering with AWS, a cloud computing company, to develop a new AI chip. Intel will produce this chip using its advanced 18A technology. The company has also agreed to make a custom Xeon processor for AWS, building on their existing partnership.
Intel’s CEO, Patrick Gelsinger, said that the company’s deal pipeline has tripled this year, and the AWS deal is a major part of this growth. He believes this partnership will help Intel build a strong foundry business.
Intel’s stock price went up significantly due to this positive news and another big contract it won from the US government. The company posted losses in the last two quarters, but is working to cut costs and become more efficient.
Intel has also been facing some challenges, including losing a major customer, Sony, which would have given Intel a big contract to make chips for its next PlayStation console. The company is trying to make changes to turn things around, including reducing costs and potentially selling some of its other businesses.
