Intel spins off chip manufacturing to expand contract manufacturing capabilities
on September 6 Intel announced a major change to its business structure, spinning off its contract chip manufacturing business into a separate subsidiary in a move aimed at boosting the confidence of major tech companies such as Apple , AMD, Qualcomm, who might previously have been wary of handing over their designs to a competitor. Now Intel hopes to overcome barriers of mistrust and attract more customers to its contract manufacturing.
According to a report by a Taiwanese publication Anue, the plan has been approved by the board of directors and will be the company's biggest transformation in decades. A new operating committee created to manage the subsidiary will focus on strengthening its independence and reducing the risk of conflicts of interest with clients.
In parallel with this restructuring, Intel signed a multi-billion dollar agreement with Amazon to jointly develop chips for AWS's AI infrastructure, which could be a promising start for the revamped company.
Intel hopes that the successful implementation of this project will open up new opportunities for attracting large orders, such as the production of AWS processors Graviton and AI chips trainium.
