Intel to Establish Standalone Programmable Solutions Group, Led by Sandra Rivera

Intel Corporation has announced plans to separate its Programmable Solutions Group (PSG) operations into a standalone business to enhance its competitiveness in the FPGA industry.

Intel plans to separate its Programmable Solutions Group (PSG) operations into a standalone business.
Intel has appointed Sandra Rivera, executive vice president at Intel, as the CEO of PSG.
Intel aims to report PSG as a separate business unit in its first-quarter 2024 financials and intends to conduct an initial public offering (IPO) for PSG within the next two to three years.

In a move to enhance its competitiveness in the FPGA industry, Intel Corporation has announced its plans to separate its Programmable Solutions Group (PSG) operations into a standalone business. This strategic decision will provide PSG with the autonomy and flexibility it needs to accelerate its growth and effectively compete in various markets, including data centers, communications, industrial, automotive, aerospace, and defense sectors.

As part of the announcement, Intel has appointed Sandra Rivera, executive vice president at Intel, as the CEO of PSG. Additionally, Shannon Poulin has been named the chief operating officer. The standalone operations for PSG are expected to commence on January 1, 2024, with ongoing support from Intel.

Intel aims to report PSG as a separate business unit in its first-quarter 2024 financials and intends to conduct an initial public offering (IPO) for PSG within the next two to three years. The company may also explore opportunities with private investors to further accelerate PSG’s growth while retaining a majority stake.

Despite the separation, Intel and PSG will maintain a strategic alignment, including their relationship with Intel Foundry Services (IFS). Together, they will address key areas of the FPGA market. The collaboration will also enable PSG to provide customers with greater predictability of supply aligned with their specific needs, ensuring a more resilient supply chain.

Intel CEO Pat Gelsinger expressed his confidence in Sandra Rivera’s ability to lead PSG, citing her successful efforts in reinvigorating Intel’s DCAI business. Rivera has a proven track record in driving high-impact transformations and delivering customer value. Intel has initiated an extensive search process for a new leader for DCAI.

Sandra Rivera herself expressed excitement about establishing PSG as a standalone business, emphasizing the potential for growth and leadership in the semiconductor industry. She also highlighted the advantage of maintaining a strategic relationship with Intel, which allows PSG flexibility in addressing fast-growing markets like automotive, data center, and communications.

Shannon Poulin added that the separation marks a significant turning point for PSG, enabling the company to build a comprehensive portfolio of FPGA products and enhance its go-to-market strategy for increased market share. The investments made in the new company and the autonomy of execution are expected to benefit customers, partners, and the entire FPGA industry.

Market estimates project the FPGA market to grow at a compound annual growth rate (CAGR) of over 9%, reaching $11.5 billion by 2027 from $8 billion in 2023. Intel’s PSG has been delivering strong performance, as evident from its record revenues for three consecutive quarters. The group has consistently met its product roadmap milestones, including the recent launch of Intel Agilex 7 with the R-Tile chiplet, which offers customers the first FPGA with PCIe 5.0 and CXL capabilities along with hard intellectual property (IP) supporting these interfaces. PSG plans to introduce a total of 15 new products to the market in 2023.

Today’s announcement follows Intel’s successful IPO for the Mobileye business in 2022 and recent investments by Bain Capital Special Situations and TSMC into Intel’s IMS Nanofabrication subsidiary in 2023. These transactions reflect Intel’s commitment to its IDM 2.0 strategy, driving growth in core businesses, and creating value for shareholders across all its assets.

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Background Information

About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

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About TSMC:

TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

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Technology Explained

Agilex: Agilex is a technology that is used in the computer industry to help streamline the development process. It is based on the Agile methodology, which is a set of principles that focus on delivering high-quality software quickly and efficiently. Agilex helps to break down complex tasks into smaller, more manageable pieces, allowing developers to work on each piece independently. This helps to reduce the time it takes to develop a product, as well as improve the quality of the final product. Additionally, Agilex helps to reduce the risk of errors and bugs, as well as improve communication between developers and stakeholders. By using Agilex, companies can create better products faster and with fewer resources.

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chiplet: Chiplets are a new type of technology that is revolutionizing the computer industry. They are small, modular components that can be used to build powerful computing systems. Chiplets are designed to be used in combination with other components, such as processors, memory, and storage, to create a complete system. This allows for more efficient and cost-effective production of computers, as well as more powerful and versatile systems. Chiplets can be used to create powerful gaming PCs, high-end workstations, and even supercomputers. They are also being used in the development of artificial intelligence and machine learning applications. Chiplets are an exciting new technology that is changing the way we build and use computers.

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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FPGA: Field Programmable Gate Arrays (FPGAs) are a type of technology used in the computer industry. They are integrated circuits that can be programmed to perform specific tasks. FPGAs are used in a variety of applications, including digital signal processing, networking, and embedded systems. They are also used in the development of artificial intelligence and machine learning algorithms. FPGAs are advantageous because they can be reprogrammed to perform different tasks, allowing for greater flexibility and faster development times. Additionally, FPGAs are more energy efficient than traditional processors, making them ideal for applications that require low power consumption.

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IDM 2.0: Intel IDM 2.0 is Intel's integrated device manufacturing (IDM) strategy introduced at 2021. It is a major evolution of the company's traditional IDM model, which has been in place since its founding in 1968. Under the IDM 2.0 strategy, Intel will continue to design and manufacture its own chips, but it will also become a major provider of foundry services to other companies. This will allow Intel to tap into the growing demand for semiconductor manufacturing capacity, while also generating new revenue streams.

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PCIe: PCIe (Peripheral Component Interconnect Express) is a high-speed serial computer expansion bus standard for connecting components such as graphics cards, sound cards, and network cards to a motherboard. It is the most widely used interface in the computer industry today, and is used in both desktop and laptop computers. PCIe is capable of providing up to 16 times the bandwidth of the older PCI standard, allowing for faster data transfer speeds and improved performance. It is also used in a variety of other applications, such as storage, networking, and communications. PCIe is an essential component of modern computing, and its applications are only expected to grow in the future.