February 22, 2024 Intel’s CEO Pat Gelsinger announced a major reorganization, splitting the company into two independent entities under the Intel brand to achieve its goal of becoming the world’s second-largest chip manufacturer by 2030.

Intel Foundry Services (IFS) will expand to include technology development, supply chains, fabrication, and packaging services, while the Product division will focus on client, desktop, and networking kit development and licensing.

This strategic move aims to serve businesses traditionally seen as competitors, with strict confidentiality measures in place between the two divisions. Intel is also partnering with companies like Arm and Microsoft, aiming to fill fabs with major chip vendors’ projects, while teasing next-gen process tech expected to roll out between 2025 and 2027.

Gelsinger made the strategy clear at Intel’s Foundry Direct Connect event in San Jose, California Wednesday. “We want to be the foundry for the world. If we’re going to be the Western foundry at scale, we can’t be discriminating in who’s participating in that.”

Sources include: Reuters