Sep 16, 2024 - Economy
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Intel late today confirmed that it intends to separate its foundry business as an independent subsidiary.
Between the lines: The move will set the business up with its own board and the potential to raise outside capital down the line.
- Remember, Intel was recently reported to be kicking around ideas for the business, including a sale or spinoff.
The big picture: Intel has ambitions to spend tens of billions on new factories to support the foundry business, which makes chips for itself and outside customers.
- A subsidiary structure will unlock important benefits, including providing those external customers and suppliers with clearer separation and independence from the rest of Intel, which also designs chips.
The impact: The news, coupled with a separate announcement that it inked Amazon AWS as a new foundry customer, gave Intel investors a much needed pop after today's bell, sending shares up nearly 10% in extended trading.
- They closed today down more than 56% year to date.
