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Intel has announce a key client win and switch to its foundry business sector as the beleaguered chipmaker looks to fulfill a turnaround .
Intel is exact steps to transition its chip metalworks division , Intel Foundry , to an independent subordinate , Intel CEO Patrick Gelsingersaid in a web log post . Intel Foundry ’s leadership is n’t change , and the subsidiary will remain inside Intel . But Intel Foundry will gain an operating board , including independent theater director .
Gelsinger also sound out the companionship would pause its scrap manufacturing projects in Poland and Germany for two twelvemonth “ found on anticipated market demand , ” and consider pulling back on its chip publicity and testing operations in Malaysia . Intel previously drink to pass over $ 36 billion to build semiconducting material factory in Magdeburg , Germany ; $ 4.6 billion on a chip works near the Polish metropolis of Wrocław ; and $ 7 billion on its Malaysia footprint .
“ We have tripled our pot pipeline since the start of the year , ” Gelsingersaidof Intel Foundry ’s business organisation , account the AWS deal as a “ multi - twelvemonth , multi - billion - dollar bill theoretical account ” that could potentially involve additional flake design . He added that it “ demonstrates the continued progress we are piss to build a world - class foundry business . ”
Intel ’s cost - cutting and dealmaking — along with a newly awarded $ 3.5 billion contract to build up chips for the Pentagon — place the company ’s stock soaring over 6 % at market near . It ’s a undimmed spot in Intel ’s otherwise grim fiscal twelvemonth .
In Q1 , Intel posted a $ 437 million net expiration — a loss that widened to $ 1.6 billion in Q2 . Intel Foundry posted $ 5.3 billion in operating losses in H1 , despite a slight class - over - twelvemonth climb in tax income .
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Intel also reportedlylost outon a major customer , Sony , after failing to come to a chip manufacturing concord for Sony ’s next PlayStation console . That linkup - up would ’ve give $ 30 billion to Intel ’s metalworks business sector , accordingto Reuters .
This summertime , Intel announced a $ 10 billion price - reduction plan , which let in laying off 15,000 staffers through separation and early retreat offerings . ( Intel says it ’s more than midway through the unconscious process and look to envelop up by the end of the year . ) The chipmaker has also reportedly debate selling its autonomous driving arm Mobileye and its enterprise networking division .
