However, Intel has faced financial challenges, posting a net loss of $1.6 billion in Q2 and operating losses of $5.3 billion in H1 for Intel Foundry. The company also lost a potential chip manufacturing agreement with Sony for its next Playstation console. To mitigate these losses, Intel has initiated a $10 billion cost-reduction plan, which includes laying off 15,000 employees and potentially selling its autonomous driving arm Mobileye and its enterprise networking division.
Key takeaways:
- Intel is transitioning its chip foundry division, Intel Foundry, into an independent subsidiary, with an operating board including independent directors.
- The company plans to pause its chip fabrication projects in Poland and Germany for two years and may reduce its chip packaging and testing operations in Malaysia.
- Intel has signed a deal with AWS to co-develop an AI chip using Intel’s 18A chip fabrication process and to produce a custom Xeon 6 processor for AWS.
- Despite a challenging fiscal year, Intel's stock rose over 6% following a $3.5 billion contract to build chips for the Pentagon and a $10 billion cost-reduction plan, which included laying off 15,000 staffers.