Intel to Split Business Units for IPO... "Rebuilding the Semiconductor Kingdom"

Stock Price Rises on News Related to Programmable Semiconductor Group (PSG)
in the Programmable Chip Sector

American semiconductor company Intel announced plans to spin off its Programmable Solutions Group (PSG), one of its business units, and pursue an independent company listing.

On the 3rd (local time), Intel stated in a press release that it is working on separating PSG into an independent company starting January 1 of next year. Intel explained, "We plan to conduct an initial public offering (IPO) of PSG within the next 2 to 3 years," adding, "Intel will retain a majority stake while seeking opportunities to accelerate business growth together with investors."

Pat Gelsinger, CEO, said in the statement, "The plan to establish PSG as an independent business and pursue an IPO is another example of how we continue to create more value for our investors."

[Image source=EPA Yonhap News]

PSG is a division that customizes chips for various uses, created when Intel acquired Altera in 2015. Altera is a semiconductor chip manufacturer producing 'FPGAs' used in mobile phone networks and computer networking equipment, which Intel purchased in 2015 for $14 billion (approximately 19 trillion won).

Some analysts view Intel's plan to spin off this business unit as part of efforts to rebuild the semiconductor empire since Pat Gelsinger's return as CEO in 2021.

Shortly after taking office in February 2021, Gelsinger announced the 'IDM 2.0' vision, pledging to "restore past glory." The core of this vision is to establish the Intel Foundry Services (IFS) division responsible for foundry (contract manufacturing) business and secure production bases worldwide to re-enter the competition in ultra-fine process technology.

Intel has maintained industry leadership centered on PC central processing units (CPUs) for decades but failed to respond promptly to the rapidly shifting market focused on mobile, losing foundry market leadership to Taiwan's TSMC and Samsung Electronics.

Although Intel has faced difficulties such as six consecutive quarters of declining revenue, it has set an ambitious plan to focus on divisions like foundry and catch up with Taiwan semiconductor company TSMC by 2026.

Meanwhile, following the news of the PSG spin-off, Intel's stock price rose more than 2% in after-hours trading on the New York Stock Exchange that day.

This content was produced with the assistance of AI translation services.