Intel still makes the majority of processors at the heart of PCs, laptops, and servers, but that’s not enough to appease investors.
Intel started the week with a critical board meeting and ended it with reports that Qualcomm approached the company about a potential acquisition.
But Gelsinger is still calling the shots and, for now, he says Intel is pushing forward as an independent company with no plans to spin off the foundry. In ato employees on Monday, he said the two halves are"better together," though the company is setting up a separate internal unit for the foundry, with its own board of directors and governance structure and the potential to raise outside capital.
Monday's announcement on the new governance structure for the foundry business served as an opening salvo meant to convince investor that serious changes are underway as the company prepares to launch its manufacturing process, called 18A, next year.
"Some customers are reluctant to give their names because of the competitive dynamics," Gelsinger told Fortt."But we've seen a large uptick in the amount of customer pipeline activity we have underway."earlier this year it would use Intel Foundry to produce custom chips for its cloud services, an agreement that could be worth $15 billion to Intel. Microsoft CEOsaid in February that it would use Intel to produce a chip, but didn't provide details.
For now, Intel's biggest foundry customer is itself. The company started reporting the division's finances this year. For the latest quarter, which ended in June, it had an operating loss of $2.8 billion on revenue of $4.3 billion. Only $77 million in revenue came from external customers.
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