{"id":76343,"date":"2024-09-17T12:00:11","date_gmt":"2024-09-17T12:00:11","guid":{"rendered":"http:\/\/guid_108034837"},"modified":"2024-09-17T12:00:11","modified_gmt":"2024-09-17T12:00:11","slug":"intel-stock-jumps-on-plan-to-turn-foundry-business-into-subsidiary-and-allow-for-outside-funding","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/intel-stock-jumps-on-plan-to-turn-foundry-business-into-subsidiary-and-allow-for-outside-funding\/","title":{"rendered":"Intel stock jumps on plan to turn foundry business into subsidiary and allow for outside funding"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/09\/intel-stock-jumps-on-plan-to-turn-foundry-business-into-subsidiary-and-allow-for-outside-funding.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"RelatedQuotes-relatedQuotes\" id=\"RegularArticle-RelatedQuotes\">\n<div class=\"RelatedQuotes-quotesContainer\">\n<div class=\"RelatedQuotes-titleAndTime undefined\">\n<p class=\"RelatedQuotes-text\">In this article<\/p>\n<\/div>\n<ul class=\"RelatedQuotes-list\">\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">INTC<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">AMZN<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<\/ul>\n<\/div>\n<div class=\"RelatedQuotes-cfaButtonContainer\"><button id=\"ArticlePageTickerCreateAccountButton\" class=\"CreateFreeAccountButton-buttonContainer\"><span class=\"CreateFreeAccountButton-buttonText\"><span>Follow your favorite stocks<\/span><span class=\"CreateFreeAccountButton-buttonTextBold\">CREATE FREE ACCOUNT<\/span><\/span><\/button><\/div>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108015142\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">Intel CEO Pat Gelsinger holds a sample of a wafer during his keynote speech at the Computex conference in Taipei on June 4, 2024.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">I-hwa Cheng | AFP | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Intel<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> shares jumped 8% in extended trading Monday after the company said it plans to turn its foundry business into an independent unit with its own board and the potential to raise outside capital.<\/p>\n<p>As part of CEO Pat Gelsinger&#8217;s effort to turn around the struggling chipmaker, Intel said in a memo to employees that it will also sell off part of its stake in Altera.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Gelsinger said the restructuring would allow the foundry business to &#8220;evaluate independent sources of funding,&#8221; and comes days after Intel&#8217;s board met to assess the direction and future of the company. The foundry business, which Intel plans to use to manufacture chips for other customers, has been a big drag on its bottom line, with the company spending roughly $25 billion on it in each of the last two years.<\/p>\n<p>Beyond just considering outside funding, Intel is weighing whether to spin off the foundry business, possibly into a separate publicly traded company, according to a person with knowledge of the matter who declined to be named in order to discuss confidential information.<\/p>\n<p>With a standalone &#8220;operating board&#8221; and a cleaner corporate structure, the mechanics of a separation become far easier than trying to turn a fully integrated unit into a separate company.<\/p>\n<p>Prior to the postmarket pop, Intel had lost almost 60% of its value this year. The company has given up market share in its core PC and data center business and watched <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><span class=\"waslinkname\">Nvidia<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> run away with the market for chips that power artificial intelligence workloads. In August, Intel reported disappointing quarterly results, sparking the sharpest sell-off in 50 years, and <span class=\"waslinkname\">said<\/span> it would lay off more than 15% of its workforce as part of a $10 billion cost-reduction plan. Gelsinger said the company is about halfway through the layoffs.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108028558\"><\/div>\n<div class=\"group\">\n<p>Intel will also pause its fabrication efforts in Poland and Germany &#8220;by approximately two years based on anticipated market demand,&#8221; Gelsinger said, and pull back on its plans for its Malaysian factory. U.S. manufacturing projects will remain unaffected, the company said.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Earlier on Monday, Intel was <span class=\"waslinkname\">awarded<\/span> up to $3 billion from the Biden administration and the CHIPS and Science Act, an effort to bring chipmaking to the U.S. The funding is for the &#8220;Secure Enclave&#8221; program, which furthers a project between Intel and the Department of Defense.<\/p>\n<p>The U.S. government is bolstering its investment in semiconductor production due largely to the growing geopolitical risk around Taiwan, home to the world&#8217;s largest contract chipmaker, <span class=\"waslinkname\">Taiwan Semiconductor Manufacturing<\/span>. U.S. Commerce Secretary Gina Raimondo recently met with Gelsinger, who voiced his frustration over domestic chipmakers&#8217; heavy reliance on Taiwan Semiconductor.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Expanding deal with Amazon<\/h2>\n<div class=\"group\">\n<p>In addition to the foundry announcement, Intel said it entered into a deal with <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><span class=\"waslinkname\">Amazon<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> Web Services to produce custom chips for AI, extending a long-running partnership between the two companies. Amazon is a big customer of Intel chips to power its AWS servers, and will buy a custom Xeon processor from Intel as well, Intel said.<\/p>\n<p>The move will potentially give Intel a new foothold in the growing industry for AI server chips. While Intel has several products that can be used for AI, including Gaudi 3, Nvidia has largely taken control of the market.<\/p>\n<p>Amazon has been developing its own AI chips, including one called Trainium, for over five years. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><span class=\"waslinkname\">Microsoft<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-8\"><span class=\"waslinkname\">Google<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> have also invested heavily in custom chips to run AI, aiming to offer less expensive processors than Nvidia&#8217;s general-purpose graphics processing units.<\/p>\n<p>Intel said that it would carry out its most advanced manufacturing, including the AI chip for AWS, at its plant in Ohio that&#8217;s currently under construction.<\/p>\n<p>&#8220;All eyes will remain on us,&#8221; Gelsinger said. &#8220;We need to fight for every inch and execute better than ever before. Because that&#8217;s the only way to quiet our critics and deliver the results we know we&#8217;re capable of achieving.&#8221;<\/p>\n<p><strong>WATCH:<\/strong> <span class=\"waslinkname\">Intel awarded up to $3 billion under CHIPS Act<\/span><\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108034779\"><\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this article INTC AMZN Follow your favorite stocksCREATE FREE ACCOUNT Intel CEO Pat Gelsinger holds a sample of a wafer during his keynote speech at the Computex conference in Taipei on June 4, 2024. I-hwa Cheng | AFP | Getty Images Intel shares jumped 8% in extended trading Monday after the company said it &hellip;<\/p>\n","protected":false},"author":1,"featured_media":76344,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-76343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/76343"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=76343"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/76343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/76344"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=76343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=76343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=76343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}