Semiconductor manufacturing giant Intel has announced plans to separate its programmable chip business to form a standalone entity.
Called Programmable Solutions Group (PSG), the business is expected to start independent operations from 1 January 2024.
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The move is expected to provide greater autonomy and flexibility to PSG to expand its operations and compete effectively in field programmable gate arrays (FPGA) sector.
A wide range of industries, including the data centre, communications, industrial, automotive, aerospace, and defence sectors, are served by the FPGA industry.
Intel said that separating the business will also drive private and public equity investments that could speed up the company’s strategic repositioning and foster value creation.
Within the next two to three years Intel plans to launch an initial public offering (IPO) for PSG.
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By GlobalDataAdditionally, Intel said it will explore partnerships with private investors to accelerate PSG’s growth while maintaining a controlling interest.
Intel executive vice president Sandra Rivera has been appointed as the CEO of PSG and Shannon Poulin has been designated as the chief operating officer.
Intel CEO Pat Gelsinger said: “Our intention to establish PSG as a standalone business and pursue an IPO is another example of how we are consistently unlocking more value for our stakeholders.
“This will give PSG the independence it needs to keep growing share in the FPGA market, differentiating itself with capacity and supply resilience from IFS, and allowing Intel product teams to focus on our core business and long-term strategy.”
Rivera added: “Re-establishing PSG as a standalone business will enable us to unleash our full potential as we drive for leadership in this demanding and essential part of the semiconductor industry.
“Our strategic relationship with Intel will continue to be an advantage as it gives us maximum flexibility in how we address fast-growing markets like automotive and data center and communications.”
In 2022, Intel listed its autonomous driving business Mobileye.
Last month, Intel sold a 10% stake in IMS Nanofabrication unit to semiconductor major Taiwan Semiconductor Manufacturing Company (TSMC).
