AWS win is boost for Pat Gelsinger’s plan to turn around embattled chip company
Intel chief executive Pat Gelsinger has landed Amazon .com’s AWS as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker.
“Today’s announcement is big,” Mr Gelsinger said in an interview. “This is a very discerning customer who has very sophisticated design capabilities.” Mr Gelsinger, who embarked on a bold comeback effort for Intel in 2021, has had to scale back some of his ambitions in the name of efficiency. With sales shrinking and losses piling up, the company announced plans last month to slash 15,000 workers, find $10 billion in cost savings and suspend Intel’s dividend. Now he’s going further to rein in expansion plans, especially overseas.
Intel also is looking to speed up efforts to execute the $10 billion in cost savings and focus its products better on AI computing, an area where rival Nvidia has excelled. Another change: Intel’s foundry operations, referred to as IFS, will be further separated from the rest of the company and become a wholly owned subsidiary. That move is aimed in part at convincing prospective customers — some of whom compete with Intel — that they are dealing with an independent supplier.
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