Positions PSG to more effectively compete in
FPGA market; ongoing strategic alignment with Intel drives value
creation for both companies.
NEWS HIGHLIGHTS
- Standalone operations for Programmable Solutions Group (PSG)
expected to begin Jan. 1, 2024, with ongoing support from Intel.
Intel expects to report PSG as a separate business unit when it
releases first-quarter 2024 financials.
- Sandra Rivera will assume leadership of PSG as chief executive
officer (CEO). She will continue to lead Intel’s Data Center and AI
Group (DCAI) until a new leader is identified. Shannon Poulin has
been named chief operating officer (COO) of PSG.
- Separation to enable potential private and public equity
investments that will help accelerate strategic repositioning of
the business and drive substantial value creation.
- Announcement follows successful completion of IPO for Intel’s
Mobileye business in 2022, as well as announced private investments
by Bain Capital Special Situations and TSMC into Intel’s IMS
Nanofabrication subsidiary.
- Intel and PSG leadership will host a conference call for
investors, media and industry analysts at 2 p.m. PDT today to
provide further details and answer questions.
Intel Corporation today announced its intent to separate its
Programmable Solutions Group (PSG) operations into a standalone
business. This will give PSG the autonomy and flexibility it needs
to fully accelerate its growth and more effectively compete in the
FPGA industry, which serves a broad array of markets, including the
data center, communications, industrial, automotive, aerospace and
defense sectors. Intel also announced that Sandra Rivera, executive
vice president at Intel, will assume leadership of PSG as chief
executive officer; Shannon Poulin has been named chief operating
officer.
Standalone operations for PSG are expected to begin Jan. 1,
2024, with ongoing support from Intel. Intel expects to report PSG
as a separate business unit when it releases first-quarter 2024
financials. Over the next two to three years, Intel intends to
conduct an IPO for PSG and may explore opportunities with private
investors to accelerate the business’s growth, with Intel retaining
a majority stake.
The two companies will remain strategically aligned, including
continuing PSG’s relationship with Intel Foundry Services (IFS), as
they work together to address key areas of the FPGA market.
Building on PSG’s highly successful Supply Resilience program
pilot, the relationship with IFS will also uniquely enable PSG to
give customers greater predictability of supply aligned to their
needs, ensuring a more resilient supply chain.
“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,” said Intel CEO Pat Gelsinger. “Sandra has
proven herself by reinvigorating DCAI, placing it on a path for
success. I am confident she will bring PSG that same dedication,
energy and customer commitment.”
Rivera has been instrumental in putting Intel’s DCAI business
back on the path to leadership and growth, with a more competitive
product roadmap, an emphasis on delivering customer value and a
strong focus on disciplined execution. Rivera’s track record of
driving high-impact transformations extends to her leadership of
the Network Platforms Group, where she advanced breakthrough ways
to integrate silicon and software to create greater customer value
and evolve network infrastructure to Intel-based solutions. Intel
has already begun an extensive internal and external search process
for a new leader for DCAI. Until that person is identified, Rivera
will continue to lead DCAI.
“This is an incredibly exciting day for me and the PSG team.
Reestablishing 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,” said
Rivera. “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.”
Poulin added, “This is a significant inflection point for the
PSG business – one that will enable us to build out a leadership
end-to-end portfolio of FPGA products, while also making
enhancements to our go-to-market strategy that will enable us to
achieve market share growth. The investments we are making in the
new company and the autonomy of execution is good news for our
customers, partners and the entirety of the FPGA industry.”
According to third-party estimates, the FPGA market is expected
to grow at a compound annual growth rate (CAGR) of more than 9%,
from $8 billion in revenues in 2023 to $11.5 billion by 2027.
During Intel’s second-quarter 2023 earnings call, the company
highlighted that PSG had delivered record revenues for a third
consecutive quarter. The group has been consistently delivering
against its product roadmap, including the second-quarter launch of
the Intel Agilex® 7 with the R-Tile chiplet – bringing customers
the first FPGA with PCIe 5.0 and CXL capabilities and the only FPGA
with hard intellectual property (IP) supporting these interfaces.
PSG has already launched 11 of the 15 new products the team expects
to bring to market in calendar year 2023.
Today’s announcement follows the successful completion of an IPO
for the Mobileye business in 2022, as well as announced investments
by Bain Capital Special Situations and TSMC into Intel’s IMS
Nanofabrication subsidiary in 2023. Together, these transactions
underscore Intel’s intense focus on advancing its IDM 2.0 strategy,
driving growth in its core businesses and creating value for
shareholders across all of its assets.
Conference Call Details
Intel and PSG leadership will host a conference call for
investors, media and industry analysts at 2 p.m. PDT today to
provide further details and answer questions. Please visit
https://edge.media-server.com/mmc/p/sa59z9zt to join the conference
call. A replay will be available on Intel’s Investor Relations
website, intc.com.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating
world-changing technology that enables global progress and enriches
lives. Inspired by Moore’s Law, we continuously work to advance the
design and manufacturing of semiconductors to help address our
customers’ greatest challenges. By embedding intelligence in the
cloud, network, edge and every kind of computing device, we unleash
the potential of data to transform business and society for the
better. To learn more about Intel’s innovations, go to
newsroom.intel.com and intel.com.
Forward-Looking Statements
This release contains forward-looking statements with respect to
Intel’s business plans, strategies and future market expectations
and anticipated benefits therefrom, including with respect to the
planned separation, leadership, standalone operation and conduct of
an IPO of PSG, the expected growth of the FPGA market and the
anticipated benefits to PSG and Intel. Such statements involve many
risks and uncertainties that could cause our actual results to
differ materially from those expressed or implied, including: our
ability to successfully execute the separation of PSG into a
separate, stand-alone business unit in the timeframe anticipated;
the ability of new PSG leadership to successfully operate PSG as a
stand-alone business and realize the potential benefits of such
arrangement; the state of the capital markets and our ability to
successfully achieve an IPO of, or other equity investment in, PSG;
changes in demand for PSG’s and our products; changes in product
mix; the complexity and fixed cost nature of our manufacturing
operations; the high level of competition and rapid technological
change in PSG’s and our industries; the significant upfront
investments in R&D and PSG’s and our business, products,
technologies, and manufacturing capabilities; vulnerability to new
product development and manufacturing-related risks, including
product defects or errata, particularly as we develop next
generation products and implement next generation process
technologies; risks associated with a highly complex global supply
chain, including from disruptions, delays, trade tensions, or
shortages; sales-related risks, including customer concentration
and the use of distributors and other third parties; potential
security vulnerabilities in our products; cybersecurity and privacy
risks; investment and transaction risk; intellectual property risks
and risks associated with litigation and regulatory proceedings;
evolving regulatory and legal requirements across many
jurisdictions; geopolitical and international trade conditions; our
debt obligations; risks of large scale global operations;
macroeconomic conditions; impacts of the COVID 19 or similar such
pandemic; and other risks and uncertainties described in our
earnings release dated July 27, 2023, our most recent Annual Report
on Form 10-K and our other filings with the U.S. Securities and
Exchange Commission. All information in this press release reflects
Intel management views as of the date hereof unless an earlier date
is specified. Intel does not undertake, and expressly disclaims any
duty, to update such statements, whether as a result of new
information, new developments, or otherwise, except to the extent
that disclosure may be required by law.
© Intel Corporation. Intel, the Intel logo and other Intel marks
are trademarks of Intel Corporation or its subsidiaries. Other
names and brands may be claimed as the property of others.
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version on businesswire.com: https://www.businesswire.com/news/home/20231003698068/en/
Tyler Tatman Investor Relations 1-503-712-9122
tyler.m.tatman@intel.com
Sophie Won Media Relations 1-408-653-0475
sophie.won@intel.com
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