Frees them up to probably compete more with anything overlapping at Intel or to pursue other relationships as the market demands/permits and opportunities present themselves.
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.
SANTA CLARA, Calif., October 03, 2023–(BUSINESS WIRE)–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.”