Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com, Oct. 4, Intel announced today that it will spin off its programmable solutions division (PSG) to operate as a separate business.

The business unit, which develops Intel's Agilex, Stratix and other FPGA products, will become a separate entity of Intel from the first quarter of 2024, with a long-term goal of selling some of its business in IPO in two to three years' time.

Intel PSG will be transformed into a separate business unit in early 2024. Intel CEO Sandra Rivera will serve as the new CEO of PSG, and Rivera is currently general manager of Intel data Center and artificial Intelligence Group (DCAI). In the meantime, Rivera will continue to serve as DCAI until Intel finds a replacement.

The spin-off of PSG is the latest move by Intel to restructure its multifaceted business, focusing on the core competitiveness of its silicon lithography and chip design. According to CTOnews.com statistics, since the current CEO Pat Gelsinger was appointed two years ago, Intel has sold or spun off several business units, including its SSD business, NUC mini PC business, and Mobileye ADAS division, and has made a major new investment in Intel's foundry services (IFS) fab division.

For its independent PSG business unit, Intel is looking at a track that is very similar to that of Mobileye. Intel will retain a majority stake while still liberating the business unit to operate more independently. This strategy works well for Mobileye, which continues to grow along with its successful IPO last year, and Intel hopes they can achieve this goal again through an independent PSG business.

Intel admits to mismanaging PSG, and despite a series of record quarterly financial results for PSG, Intel believes that PSG is underserved in FPGA's truly high-growth, high-profit markets such as industry, automotive, defence and aerospace. Since being acquired by Intel in 2015, especially in the past few years, Intel's PSG, as a formal part of DCAI, has been focused on data center solutions, which is bad for other business units.

"it was a very exciting day for me and the PSG team. Re-establishing PSG as a separate business will enable us to unleash our full potential, and we will seek leadership in this demanding and essential part of the semiconductor industry," Rivera said. Our strategic relationship with Intel will continue to be an advantage because it provides maximum flexibility in how we respond to fast-growing markets such as automobiles, data centers and communications.

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