Intel is spinning into five separate companies

Intel is spinning

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Split into five independent companies

Intel has repeatedly emphasized on many public occasions that the company will be split into five independent companies in the future. In fact, Intel is spinning off the company into five separate companies.


IFS (Intel Foundy Service) refers to Intel’s foundry service department. Currently, this department has been separated and is trying its best to find orders from customers, but its revenue is still very small.

In February 2024, Intel publicly stated that intel18A process technology had finalized three wafer foundry customers in the third quarter of 2023, and predicted that a fourth one would be signed before the end of 2024.

However, Intel has so far outsourced more chips to TSMC than Intel itself has captured from TSMC in the market.

In terms of finance, the OEM services department’s revenue in 2023 was US$18.9 billion, down from US$27.5 billion in 2022, and the OEM department’s operating loss was US$7 billion, which was larger than the US$5.2 billion operating loss in the previous year. 2024 will be the low point of foundry operating losses. Operating losses are expected to peak in 2024.

In the first quarter of 2024, the departmental independent income statement of IFS services was announced for the first time. The financial report shows that the first quarter revenue of the wafer foundry business group dropped by 10% year-on-year to US$4.4 billion, with an operating loss of US$2.5 billion. This was mainly due to the extremely high cost of building a wafer foundry. The company expects to reach profit and loss balance at least in 2030.


On January 3, 2024, Intel once again confirmed that it has received the support of major shareholders and will spin off the PSG division, Altera, the world’s second largest FPGA manufacturer acquired a few years ago, from Intel into an independent company. Intel also plans to put Altera back on the market within the next two to three years. Intel spent $16.7 billion to acquire Altera in 2015 and delisted it from the U.S. stock market. This acquisition is also the company’s largest M&A transaction to date.


In October 2022, Intel relisted Mobileyes, the self-driving chip company it previously acquired, under the ticker MBLY. Intel still holds about 88% of Mobileye’s shares.

IMS Nanofabrication

Unless you are a semiconductor-related practitioner or an Austrian, you probably will not have heard that this little-known company is IMS Nanofabrication, a subsidiary of Intel Corporation.

It is the global technology leader in multi-beam mask writers and its customers are some of the world’s largest wafer manufacturers who rely on its technology to produce wafers. IMS Nanofabrication’s innovative multi-beam burners play a key role in wafer manufacturing and provide significant added value to the semiconductor industry.

PCs and servers

This is the core division of Intel’s main business that is well known to ordinary people; it mainly includes desktop personal computers, notebook computers, servers, graphics cards, artificial intelligence, and software and other businesses.

For this part, please see my other article “How does Intel make money? and the benefits to invest in it” and the benefits of investing in it.

Intel is spinning
credit: Ideogram

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