Intel plans to operate Programmable Solutions Group as independent business

October 3, 2023, Santa Clara, California - Intel Corporation announced plans to spin off its Programmable Solutions Group (PSG) and operate it as an independent business. This decision will give PSG the autonomy and flexibility it needs to comprehensively accelerate its development and compete more effectively in the FPGA industry and serve a wide range of fields including data centers, communications, industrial, automotive and aerospace. multiple markets within. Intel also announced that Intel Executive Vice President Sandra Rivera will serve as CEO of the PSG unit, while Shannon Poulin will serve as chief operating officer.

With continued support from Intel, independent operations of the PSG unit are expected to begin on January 1, 2024. Intel expects to report PSG as an independent business unit when it releases its first-quarter 2024 earnings. Over the next two to three years, Intel will retain a majority stake while it plans an initial public offering of PSG and may explore opportunities with private investors to accelerate business growth.

The two companies maintain strategic alignment, including continuing PSG's partnership with Intel Foundry Services (IFS) to jointly address challenges in key areas of the FPGA market. Building on PSG's extremely successful Supply Resilience program pilot, cooperation with IFS will also enable PSG to provide customers with better supply predictability based on their needs, ensuring a more reliable supply chain. elasticity.

"Our plan to operate PSG independently and conduct an initial public offering is another example of how we continue to create more value for our stakeholders. This will give PSG the independence it needs to continue to expand its share of the FPGA market Sandra has proven her ability to reinvigorate the DCAI division and put it on a path to success, creating a differentiated advantage with IFS through capacity and elastic supply, and allowing Intel product teams to focus on our core business and long-term strategy. . I am confident that she will bring the same enthusiasm, energy and commitment to customers at PSG," said Intel CEO Pat Gelsinger .

Sandra Rivera has developed a more competitive product roadmap that emphasizes creating value for customers and places a strong emphasis on rigorous execution, helping Intel's DCAI business return to leadership and on the path to growth. Sandra Rivera's proven track record of driving high-impact transformation extends to the Network Platforms Group she leads. Within the Network Platforms Group, she drove breakthrough approaches to integrating silicon and software to create greater customer value and evolved network infrastructure into Intel-based solutions. Intel has begun an extensive internal and external search for a new head of DCAI. Sandra Rivera will continue to lead DCAI until a new candidate is identified.

Sandra Rivera said: “This is an exciting day for me personally and for the PSG team. Rebuilding PSG as an independent business unit will allow us to realize our full potential in this demanding and critical part of the semiconductor industry. "Maintaining leadership in key areas. Our strategic relationship with Intel will continue to be a major advantage by giving us maximum flexibility in addressing fast-growing markets such as automotive, data centers and communications."

Shannon Poulin added: "This is an important turning point for PSG's business - it will help us build a leading end-to-end FPGA product portfolio, while strengthening our go-to-market strategy and increasing market share. The new company will attract investment and execute This autonomy is good news for our customers, partners and the entire FPGA industry.”

According to third-party estimates, the FPGA market will grow at a compound annual growth rate (CAGR) of more than 9%, from US$8 billion in revenue in 2023 to US$11.5 billion in 2027. During the second quarter 2023 earnings call, Intel emphasized that the revenue of the PSG business unit had reached record highs for three consecutive quarters. PSG has always progressed and delivered as scheduled on its product roadmap, including the launch of Intel Agilex® 7 R-Tile in the second quarter, which is the first and only FPGA to bring PCIe 5.0 and CXL capabilities to customers. A product with the hardened intellectual property (IP) required to support these interfaces. The PSG team expects to launch 15 new products in 2023, and 11 have been launched so far.

Previously, Intel's Mobileye business successfully completed its initial public offering in 2022, and Bain Capital Special Situations and TSMC also announced private investment in IMS Nanofabrication, an Intel subsidiary. This shows that Intel attaches great importance to promoting the IDM 2.0 strategy and promoting core business growth while creating value for shareholders in all aspects.