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Intel is not yet ready to spin off IFS as a separate entity and take it public, as it does with its mobile driver business Mobileye, and plans to launch a smart device in the next two to three years.
Intel Chief Executive Pat Gelsinger said Thursday that the company has no plans to spin off its contract chip manufacturing business. Gelsinger transferred Inteland's foundry components to Intel Foundry Services (IFS), which operates within Intel. IFS will begin reporting its financial results in the second quarter of next year, Gelsinger said.
Intel is not yet ready to separate IFS into a separate legal entity, as it did at Mobileye and plans to release devices with programmable chips in the next 2-3 years. And I think an internal architecture model suits us in today's environment.
In some ways, Intel operated two companies: a chip design division and afar division. This is partly to assure IFS customers that Intel is a "clean supplier." Gelsinger said production capacity is low. Currently, most of the plant’s ability is being used by Intel, so the CEO said working together is a unique advantage.
Gelsinger spoke about Inteland's manufacturing business, which is focused on PC chips and intelligent controls, at a conference in New York. Running AI applications in remote data centers like Microsoft's can be expensive and require them to run on local computers, Gelsinger said.
There is no way to have billions of Windows devices in Azure to handle these tasks over time. Gelsinger said. In economic terms, Intel's CEO said Microsoft needs to reduce the amount of data flowing between the cloud and its data centers and computers (Writing by Max A. Cherney in San Francisco; Reporting by Kenneth Li in New York; Editing by Mark Porter)
