Intel has confirmed its plans create an independent company with its Programmable Solutions Division (PSG). This new company will operate as your subsidiary, and if everything goes as expected, will go public in two or three years, as confirmed by the company. The future company, therefore, will encompass, among other things, everything related to Altera, which Intel bought in 2015 for about $16.7 billion.
The group’s progress towards its business independence will be progressive, and the first step is for it to have its own independent balance sheet. Intel will continue to support the company once it is created, and will own the majority of its shares. Everything indicates that it will seek private investors for a notable part of its securities, but will continue to have the majority of its control.
Sandra Riverawho is currently Executive Vice President of Intel, and Head of the company’s AI and Data Centers Group, will become the CEO of the companyand Intel will be in charge of manufacturing the chips designed by it.
Rivera has been key in driving Intel’s Data Center and Artificial Intelligence (DCAI) Group, and under his leadership the group has adopted a more competitive product roadmap and focused on delivering customer value. Rivera also once led Intel’s Network Platforms Group, where he made significant strides in integrating hardware and software to evolve network infrastructure toward Intel-based solutions. For now, Rivera will also continue to lead the DCAI, but on a provisional basis until Intel finds a profile to assume the position.
The independent operation of the group is scheduled to begin on January 1, 2024, which will be presented as an independent business division in the presentation of the results of the first quarter of 2024.
He Intel CEO Pat Gelsingerhas confirmed that its intention «Establishing PSG as an independent company and pursuing its IPO is another example of how we are consistently achieving more value for our shareholders. This will give PSG the independence it needs to continue gaining market share in the FPGA sector, differentiating itself with IFS supply capacity and resilience; and allowing Intel product teams to focus on our core business and long-term strategy. Sandra has shown her worth by strengthening DCAI and putting it on the path to success. I am sure that he will have the same dedication, energy and commitment to the client at PSG«.
For his part, Rivera has commented that «The re-establishment of PSG as an independent company will allow us to unleash our full potential as we move towards leadership in this essential and demanding part of the semiconductor industry. Our strategic relationship with Intel will continue to be an advantage, giving us maximum flexibility to address fast-growing sectors such as automotive, data centers and communications.«.
The creation of an independent company at Intel is not something new. It did so not long ago with Mobileye, which it went public in 2022. In addition, Intel has already announced investments from Bain Capital Special Situations and TSMC in its subsidiary IMS Nanofabrication.