Intel to Spin Off Programmable Solutions Group, Conduct IPO for Unit

By Denny Jacob

Intel intends to separate its Programmable Solutions Group into a standalone business and will conduct an initial public offering for the spin over the next two to three years.

The semiconductor giant says the separation will give the unit the flexibility needed to grow and effectively compete in the field-programmable gate array industry.

Chief Executive Pat Gelsinger said the move will unlock more value for shareholders and allow Intel's product teams to focus on its core business and long-term strategy.

Standalone operations for PSG are expected to begin on Jan. 1, with ongoing support from Intel. Intel expects to report results PSG as a separate business unit when it releases first-quarter results.

Intel said that in addition to exploring an IPO for PSG, it may seek opportunities with private investors to accelerate the business's growth while retaining a majority stake.

In conjunction with the split, Intel named Sandra Rivera as chief executive officer of PSG and Shannon Poulin chief operating officer. Rivera will continue to lead Intel's data center and AI group until a replacement is appointed.

The planned separation comes as Intel is in the midst of a broader turnaround effort. The company has faced steep competition from Nvidia and others for the most advanced chips. Intel came to prominence by both designing circuits and making them in its own factories. Now, chip companies tend to specialize either in circuit design or manufacturing, and Intel hasn't been able to pick up much business making chips designed by other people.

Write to Denny Jacob at [e-mail]

(END) Dow Jones Newswires

October 03, 2023 16:46 ET (20:46 GMT)

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