DECEMBER 20239TOP STORIESINTEL CEO PLANS SOLO PATH IN CHIP MANUFACTURINGIntel 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) MOTORCYCLE MAKER CLASSIC LEGENDS SECURES CAPITAL OF RS.875 CRORESClassic Legends Pvt Ltd, a Mahindra and Mahindra subsidiary that manufactures iconic motorcycle brands such as Yezdi and Jawa, is set to receive a Rs 875 crore fund infusion, according to a stock exchange filing. Mahindra has agreed to invest Rs 525 crore in one or more tranches of CCPS (compulsorily convertible preference shares) and equity.Classic Legends' existing shareholders and new investors will invest an additional Rs 350 crore in the motorcycle manufacturing firm in one or more tranches.Following the new fund infusion, which is expected to be completed by March 15, 2025, Mahindra will retain a 60 percent stake in Classic Legends, which will continue to be its subsidiary.The latest round of funding comes on the heels of Classic Legends' plans to invest Rs 1,000 crore until FY26 in order to catch up in the middle weight, lifestyle motorcycle market in India and tap burgeoning demand for such models in overseas markets.The funds will be used for, among other things, tooling up new products, marketing, creating distribution networks for international markets, and new product development. Classic Legends cofounder Anupam Thareja told ET in September. This sum, he said, would come from a mix of internal accruals, existing shareholders, and external investors.
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