KEY TO REMEMBER
- Intel plans to spin off its programmable chip business, with an IPO in the next two to three years.
- Starting in January, the Programmable Solutions Group (PSG) will maintain its own financial statements.
- Starting in January, the Programmable Solutions Group (PSG) will maintain its own financial statements. li>
- PSG could be better equipped to compete in the field-programmable gate array (FPGA) sector as a separate entity with greater autonomy and flexibility, Intel said.
- The FPGA market is expected to grow at a CAGR of 9% to 11.5 billion by 2027.
Intel Stock (INTC) rose in early trading Wednesday after announcing plans to operate its programmable chip unit as a separate business starting in January, with plans to spin it off through ;an initial public offering (IPO) in the next two to three years.
The Programmable Solutions Group (PSG) will maintain its own financial statements starting in the first quarter of 2024 and could be better equipped to compete in the field-programmable gate array (FPGA) market as a separate entity with greater autonomy and flexibility, Intel said . . Sandra Rivera, the current head of Intel's Data Center and AI division, is expected to take on the role of general manager of the PSG division.
Intel entered the FPGA industry by purchasing Altera for $16.7 billion in 2015. FPGAs are simpler but more power-efficient and more responsive than processors used in servers, and Intel has said it #39;expect that the FPGA industry can grow at a compound annual growth rate of more than 9%. %, from $8 billion in revenue in 2023 to $11.5 billion by 2027.
This is not the first time Intel has spun off a business unit via an IPO. Last year, Intel completed the IPO of Mobileye, which develops autonomous driving technologies and driver assistance systems.
The actions of Intel were 0.8% higher as of 9:50 a.m. ET Wednesday following the news. They have gained a third of their value since the start of the year.
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Source: investopedia.com
