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Intel to undertake a restructuring of its chip manufacturing division

Intel has confirmed that it has plans to restructure its manufacturing divisionin order to function as if it were a separate entity. By taking this step, the company expects this division to start generating margins and profits of its own, according to Reuters.

Of course, Intel has not specified the times it is considering to carry out these changes. Nor has it given excessive details about what the process will be like, and the changes that its manufacturing division will face to adapt to the news. For now, the date on which its scaling will begin is not known.

Not only that, but there are also no known names of new external clients that will use its chipmaking services. This is key to knowing more about Intel’s plans with its manufacturing division, since the basis of said business is to offer its services to third parties. Even your own competition. In fact, the chances are increasing that it will end up making chips for Nvidia, among others.

What is clear is that when Intel’s plans for this division take shape and function as a non-Intel company, the other divisions within the company will have a different relationship to it than they do today. From then on, your relationship will be of the client-supplier type. This has been assured by Intel CFO David Zinsnerin a meeting with investors.

Based on this model that you plan to adopt for your manufacturing area, Intel will be the second largest chipmaker in the world by 2024, with revenue from chip manufacturing exceeding $20 billion. Even so, its revenues from this sector will still be well below those of the main chipmaker, TSMC (Taiwan Semmi Conductor Manufacturing Co); which will enter around 85,000 million dollars in 2024 according to forecasts.

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