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Intel CEO Says Company Prepared To Go It Alone In Chip Production

Intel CEO Says Company Prepared To Go It Alone In Chip Production
According to Intel CEO Pat Gelsinger, the corporation does not intend to spin out its contract chip manufacturing division.
Under Gelsinger's leadership, Intel's manufacturing division is now housed under Intel Foundry Services (IFS), a division that runs as an internal business. According to Gelsinger, IFS will start releasing financials in the second quarter of the next year.
As it did with its Mobileye autonomous driving business, Intel isn't yet ready to split off IFS into a distinct company and list it. However, it intends to do so with the programmable chip unit within the next two to three years.
"The idea of the internal foundry model, we think, is the right path for us in the current environment," Gelsinger said in an interview with Reuters.
In some respects, Gelsinger claimed, Intel already runs two distinct businesses—a chip design company and a factory unit—partly to reassure its IFS clients that Intel is a "clean supplier" of manufacturing capacity.
According to the CEO, there are currently clear benefits to working together, in part because Intel is already utilising the majority of the factory's capacity.
At a New York presentation centred upon PC chips featuring artificial intelligence elements, Gelsinger shared his thoughts regarding Intel's manufacturing division.
According to Gelsinger, running AI applications from distant data centres is too expensive for companies like Microsoft, thus they will need to be run locally on personal computers.
"There isn't any possible way that they can have a billion Windows devices hitting Azure to be running these workloads in real time," Gelsinger said.
The CEO of Intel stated that Microsoft would have to reduce data flow between its data centres and PCs by a factor of 100 in order for the economics to work.

Christopher J. Mitchell

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