Intel to Spin Off Programmable Solutions Group, Conduct IPO for Unit
October 03 2023 - 4:01PM
Dow Jones News
By Denny Jacob
Intel intends to separate its Programmable Solutions Group into
a standalone business and will conduct an initial public offering
for the spin over the next two to three years.
The semiconductor giant says the separation will give the unit
the flexibility needed to grow and effectively compete in the
field-programmable gate array industry.
Chief Executive Pat Gelsinger said the move will unlock more
value for shareholders and allow Intel's product teams to focus on
its core business and long-term strategy.
Standalone operations for PSG are expected to begin on Jan. 1,
with ongoing support from Intel. Intel expects to report results
PSG as a separate business unit when it releases first-quarter
results.
Intel said that in addition to exploring an IPO for PSG, it may
seek opportunities with private investors to accelerate the
business's growth while retaining a majority stake.
In conjunction with the split, Intel named Sandra Rivera as
chief executive officer of PSG and Shannon Poulin chief operating
officer. Rivera will continue to lead Intel's data center and AI
group until a replacement is appointed.
The planned separation comes as Intel is in the midst of a
broader turnaround effort. The company has faced steep competition
from Nvidia and others for the most advanced chips. Intel came to
prominence by both designing circuits and making them in its own
factories. Now, chip companies tend to specialize either in circuit
design or manufacturing, and Intel hasn't been able to pick up much
business making chips designed by other people.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
October 03, 2023 16:46 ET (20:46 GMT)
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