Intel CEO Pat Gelsinger provided an update to employees on September 16, 2024, addressing the company’s direction following its Q2 earnings report. He emphasized the company’s progress in its strategic initiatives, including its partnership with Amazon Web Services (AWS) and updates on Intel’s foundry business. Gelsinger outlined several key priorities, including building on the momentum in Intel’s foundry services, enhancing efficiency, and streamlining Intel’s product portfolio, with a focus on AI and x86 technologies. Additionally, Gelsinger announced plans for greater independence for Intel Foundry, as well as updates on U.S. manufacturing initiatives and cost-saving measures.
• Intel and AWS announced a multi-year, multi-billion-dollar collaboration for custom chip designs.
• Intel Foundry will produce AI fabric chips for AWS using Intel 18A and custom Xeon 6 chips on Intel 3.
• Intel received up to $3 billion in U.S. government funding under the CHIPS Act for the Secure Enclave program.
• Intel Foundry will become an independent subsidiary to better serve external customers and enhance transparency.
• Intel will pause manufacturing projects in Poland and Germany, focusing on capital efficiency.
• U.S. manufacturing investments in Arizona, Oregon, New Mexico, and Ohio will continue as planned.
• Intel aims to achieve $10 billion in cost savings, with 15,000 workforce reductions by year-end.
• Intel will simplify its portfolio, focusing on x86 and AI while integrating Edge and Automotive into its Client Computing Group.
