Intel will spin off its chipmaking division into a separate entity, CEO Pat Gelsinger revealed in a press release. The new Intel Foundry business will remain a subsidiary of the U.S. company, and the leadership team will remain the same. There will be a new operating board that will include independent directors to govern the newly formed company.
The announcement also revealed that Intel will stop building its factories in Germany and Poland and will move forward with factories in Arizona, Oregon, New Mexico and Ohio following direct financing of $3 billion from the US government.
The CEO said Intel Foundry aims to increase capital efficiency. This means the factory in Ireland will remain the main European hub, while other European projects will be paused based on “anticipated market demand.” The advanced packaging factory in Malaysia will align with market conditions and continue to operate.
Earlier this year, Intel announced plans to lay off about 15,000 employees by the end of 2024. Gelsinger said the company is about halfway to its reduction goal through early retirement and separation offers. However, there are still “difficult decisions” to be made, and affected employees will hear more in mid-October.