Intel announces a large-scale business restructuring plan: aiming for revival through the separation of the foundry business and partnership with AWS.

September 17, 2024 (excerpt)

Intel, a leading semiconductor company, has announced a large-scale business restructuring plan aimed at performance recovery and strengthening competitiveness. This plan includes the division of the foundry business, a strategic partnership with Amazon Web Services (AWS), and significant cost reduction.

Intel has revealed plans to spin off the foundry (semiconductor contract manufacturing) business as an independent subsidiary. CEO Pat Gelsinger explained this move in a message to employees as follows:
Intel plans to establish Intel Foundry as an independent subsidiary. This governance structure will provide external foundry customers and suppliers with a clearer separation and independence from other Intel divisions. Importantly, this will enable the evaluation of future independent sources of funding, optimize the capital structure of each business, and gain flexibility to maximize growth and shareholder value creation.
This move puts Intel in a position to easily win orders for its foundry business from other semiconductor companies and also opens up the possibility of independent funding. Furthermore, Intel announced a strategic partnership with AWS to strengthen the competitiveness of its foundry business.