Intel Creating Foundry Subsidiary and Announces AWS Chip Win
Intel is creating a foundry subsidiary, partnering with AWS for custom chip designs, receiving $3 billion from the U.S. government, cutting 15,000 jobs, and streamlining its product portfolio.
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Intel has announced significant developments in its business strategy, including the creation of a foundry subsidiary and a major partnership with Amazon Web Services (AWS). The multi-year, multi-billion dollar deal with AWS will involve custom chip designs, including an AI fabric chip and a custom Xeon 6 chip. Additionally, Intel is set to receive up to $3 billion from the U.S. government under the CHIPS Act to support semiconductor manufacturing. The foundry will operate as a subsidiary, enhancing its independence and allowing for clearer governance and potential funding opportunities. Intel's manufacturing strategy will focus on capital efficiency, with Ireland remaining a key hub while projects in Poland and Germany are postponed. The company is also undergoing workforce reductions, aiming to cut approximately 15,000 jobs by year-end. Intel plans to streamline its product portfolio, emphasizing its x86 franchise and AI capabilities. The overall goal is to transform Intel into a more competitive and efficient organization, with a focus on innovation and financial performance.
- Intel is establishing a foundry subsidiary to enhance operational independence.
- A multi-billion dollar partnership with AWS will focus on custom chip designs.
- Intel is receiving $3 billion from the U.S. government under the CHIPS Act.
- Workforce reductions are planned, targeting approximately 15,000 job cuts.
- The company aims to streamline its product portfolio and improve capital efficiency.
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