Intel CEO Pat Gelsinger holds a sample of a wafer during his keynote speech at the Computex conference in Taipei on June 4, 2024.
Intel shares jumped 8% in extended trading Monday after the company said it plans to turn its foundry business into an independent unit with its own board and the potential to raise outside capital.
Gelsinger said the restructuring would allow the foundry business to "evaluate independent sources of funding," and comes days after Intel's board met to assess the direction and future of the company.
The foundry business, which Intel plans to use to manufacture chips for other customers, has been a big drag on its bottom line, with the company spending roughly $25 billion on it in each of the last two years.
With a standalone "operating board" and a cleaner corporate structure, the mechanics of a separation become far easier than trying to turn a fully integrated unit into a separate company.
Persons:
Pat Gelsinger, Pat Gelsinger's, Gelsinger
Organizations:
Intel, Nvidia
Locations:
Taipei, Altera
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