(Reuters) – Chipmaker Intel announced on Tuesday its plans to establish its programmable chip unit as an independent business starting January next year. The company also revealed its intentions to conduct a public offering for stock in the business within the next two to three years. Intel had acquired the business in 2015 through its purchase of Altera for $16.7 billion. Programmable chips are situated between Intel’s general-purpose chips and chips that serve a specific purpose. These chips find use in a wide range of applications, ranging from data encryption to 5G wireless telecommunications equipment.
Intel also disclosed that Sandra Rivera, a veteran of the company, will be in charge of the new unit. Additionally, the company announced that the new unit will utilize Intel’s factory for chip production. Intel has commenced an extensive internal and external search for a replacement for Rivera, who currently oversees Intel’s data center and artificial intelligence chip business, effectively competing with companies such as Nvidia and Advanced Micro Devices.
The decision to establish the programmable chip unit as a standalone business is expected to bring numerous benefits to Intel. By operating as a separate entity, the unit will be able to focus exclusively on its objectives, which, in turn, is likely to result in increased efficiency and innovation. Moreover, the company’s plan to hold a public offering for the unit’s stock offers the potential for additional funding and capital growth in the future.
Intel’s move reflects the company’s broader strategy to capitalize on emerging technologies and diversify its business. As the demand for programmable chips continues to rise, establishing this unit as an independent entity positions Intel to be a key player in this rapidly growing market.
The news of Intel’s plans to transform its programmable chip unit comes amidst a series of industry developments and partnerships that the company has undertaken in recent years. Intel’s commitment to expanding its product offerings and capitalizing on new markets is indicative of its ambition to maintain its position as a leading chipmaker and remain at the forefront of technological advancements.
Reporting by Stephen Nellis in San Francisco and Samrhitha Arunasalam in Bengaluru; Editing by Shilpi Majumdar and David Gregorio
Credit: The Star : Tech Feed
