After a disastrous second quarter earnings report in August that resulted in the worst trading day for the company’s stock in 40 years, Intel (INTC) CEO Pat Gelsinger finally has some good news for Wall Street.
On Monday, Gelsinger announced that Intel has entered into an agreement with Amazon Web Services that will see the chipmaker produce custom chips for the cloud computing giant.
The CEO also said that Intel will transform its Foundry business into a subsidiary company with independent directors. A foundry is a manufacturing facility for semiconductors. The move is meant to create clear separation between Intel’s design and manufacturing businesses, providing Intel’s foundry customers with the peace of mind that its design teams won’t have access to their chips.
That’s not all. Intel also confirmed that it was awarded $3 billion in funding from the CHIPS Act. In a release, the company said the deal will “help secure the domestic chip supply chain and collaborate with the [Department of Defense] to help enhance the resilience of US technological systems by advancing secure, cutting-edge solutions.”
No comments:
Post a Comment