Intel announced its programmable chip unit will be a standalone business and is aiming to come through an IPO within the next two to three years.
Intel Launches Standalone Operations for Programmable Solutions Group (PSG)
Intel will continue its support of the PSG and is expected to begin its standalone operations by January 2024. The operations will give PSG autonomy and flexibility to further accelerate its growth and compete within the industry.
"This will give PSG the independence it needs to keep growing share in the FPGA market, differentiating itself with capacity and supply resilience from IFS, and allowing Intel product teams to focus on our core business and long-term strategy," Intel CEO Pat Gelsinger stated in a press release.
Under the leadership of Sandra Rivera as the CEO, PSG is targeting to conduct an IPO and explore opportunities with private investors within the next two to three years. On the other hand, Intel will retain its position with a majority stake.
Intel's Stock Price Increases After Announcement
CNBC reported that the chipmaker's stock price quickly rose to 2.3 percent in extended trading just hours after the announcement. The company also explained that the decision to separate PSG and pursue its IPO is just proof of Intel's dedication to providing more value to its customers.
Today's announcement is in line with the successful completion of the IPO for Intel's Mobileye business in 2022. While Intel has yet to break out PSG sales, the company revealed that it was able to offset the slump in server chip sales last July.
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