Intel is making a strong effort in the semiconductor industry with FPGAs, which can be highly flexible, efficient and can be used in a variety of industries, which are in high demand.
chip manufacturing giant intel Plans to treat its programmable chip unit as a standalone business. As a result, the company is going to launch an initial public offering (IPO) for the same.
Following the announcement on Tuesday, the chip maker’s share price saw a 2.3% rise in after-hours trading. Intel’s Programmable Solutions Group (PSG) is ready to transition to independence with its own separate balance sheet.
While Intel will retain majority ownership and continue to support the business, it also has the option to seek private investment. Sandra Rivera, who currently leads Intel’s data center and AI group, will take on the role of PSG CEO, with Intel taking over the manufacturing of the group’s chips.
The decision comes in the wake of Intel’s spinoff of its self-driving subsidiary Mobileye last year. This is in line with CEO Patrick Gelsinger’s strategic direction, which emphasizes cost management and a focus on the foundry business and core processors with the goal of competing with Taiwan Semiconductor Manufacturing Co. in manufacturing capabilities by 2026.
The FPGA business became part of Intel through its acquisition of Altera for $16.7 billion in 2015. Speaking on current developments, Gelsinger Said,
“Our intention to establish PSG as a standalone business and pursue an IPO is another example of how we are continuously unlocking greater value for our stakeholders.”
Intel’s push for FPGA semiconductors
The move also underlines the strong demand for field-programmable gate arrays, commonly known as FPGAs, in the semiconductor sector. Lattice Semiconductor, a well-known FPGA maker, sees its stock price rising by nearly 30% in 2023 and reported an 18% increase in sales during the latest quarter. Intel’s primary competitor, AMD, acquired FPGA maker Xilinx for $35 billion in 2022.
FPGAs, although less complex than the high-powered processors found in servers and PCs, offer greater flexibility, faster response times, and increased power efficiency. They are suitable for specific applications in data centers, telecommunications, video encoding, aviation and various other industries after shipping. FPGAs can also execute some artificial intelligence algorithms.
Intel markets its FPGAs under the Agilex brand. While specific sales figures for Programmable Solutions Group (PSG) have not been disclosed by Intel, the company said in July that PSG had achieved three consecutive record quarters, offsetting a decline in server chip sales. PSG operates within Intel’s data center and AI group, which generated $4 billion in sales in the second quarter.
Bhushan is a fintech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in a constant process of learning and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads adventure fantasy novels and occasionally explores his culinary skills.
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