Yet its foundry business has shown potential for improvement. Intel will turn that business into a separate subsidiary, giving it its own operating board and the ability to raise capital separately. Additionally, the aforementioned deal with AWS could help make Intel's foundry business a top company in its industry.

Intel is turning its foundry business, which manufactures chips for other companies, into an independent subsidiary. The company has revealed its plan in a note to employees from its CEO Pat Gelsinger,

Intel Corp.’s plans to create an independent subsidiary for its foundry business was a much-needed move aimed at convincing potential customers that they can trust their chip designs with a competitor’s manufacturing arm.

Intel has announced a key customer win and changes to its foundry business as the beleaguered chipmaker looks to execute a turnaround. Intel is taking steps to transition its chip foundry division, Intel Foundry,

Intel CEO Pat Gelsinger informed employees that the company is transforming its foundry arm into an independent subsidiary, confirming insider leaks from August. According

Intel has reorganized its foundry business into a separate subsidiary, Intel Foundry, to attract outside investment and address financial concerns.

Shares of Intel are surging before the opening bell after the chipmaker said its foundry business would make some custom artificial intelligence chips for Amazon Web Services as it attempts to reinvigorate its business.

While the broader Dow Jones Industrial Average ($DOWI) is trading at all-time highs, semiconductor giant Intel (INTC) is trailing the broader markets by a wide margin. The tech stock is down 70% from all-time highs after falling close to 58% in 2024.

Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs. Explore more details here.