Intel has announced plans to spin off its foundry business into an independent subsidiary, retaining leadership but gaining an operating board with independent directors. As part of cost-cutting efforts, Intel will pause its chip projects in Poland and Germany for two years and reevaluate its operations in Malaysia.
In a significant deal, Intel has partnered with Amazon Web Services (AWS) to co-develop an AI chip using Intel's 18A fabrication process and produce a custom Xeon 6 processor for AWS. This partnership is part of Intel's broader efforts to revitalize its foundry business, which has tripled its deal pipeline this year.
Despite these wins, Intel has struggled financially, with a $1.6 billion loss in Q2 and $5.3 billion in foundry losses in the first half of the year. The company is implementing a $10 billion cost-reduction plan, including staff cuts and potential sales of divisions like Mobileye and its enterprise networking arm. Intel's stock surged over 6% following these developments.
In a significant deal, Intel has partnered with Amazon Web Services (AWS) to co-develop an AI chip using Intel's 18A fabrication process and produce a custom Xeon 6 processor for AWS. This partnership is part of Intel's broader efforts to revitalize its foundry business, which has tripled its deal pipeline this year.
Despite these wins, Intel has struggled financially, with a $1.6 billion loss in Q2 and $5.3 billion in foundry losses in the first half of the year. The company is implementing a $10 billion cost-reduction plan, including staff cuts and potential sales of divisions like Mobileye and its enterprise networking arm. Intel's stock surged over 6% following these developments.