Continuing to promote the IDM2.0 strategy, Intel FPGA business will operate independently

The independent operation of the Programmable Solutions Division (PSG) is expected to begin on January 1, 2024, with continuous support from Intel.

Santa Clara, California, October 3rd - Intel Corporation announced its intention to separate its Programmable Solutions Division (PSG) business into a separate business. This will provide PSG with the autonomy and flexibility necessary to fully accelerate its growth, and compete more effectively in the FPGA industry, where customers primarily focus on data centers, communication, industry, automotive, aerospace, and defense sectors. Intel also announced that Sandra Rivera, Intel's executive vice president, will serve as the CEO of PSG, and Shannon Poulin will be appointed as the Chief Operating Officer.

It is reported that with the continuous support of Intel, the independent operation of PSG is expected to begin on January 1, 2024. Intel expects to report on PSG as an independent business unit when releasing its first quarter financial report for 2024. In the next two to three years, Intel plans to conduct an initial public offering for PSG and may explore opportunities with private investors to accelerate the growth of the business, while Intel will retain a majority stake. At that time, the two companies will continue to maintain strategic cooperation, including PSG continuing to cooperate with Intel wafer foundry services (IFS).

According to third-party forecasts, the FPGA market is expected to grow at a compound annual growth rate (CAGR) of over 9%, from $8 billion in revenue in 2023 to $11.5 billion in 2027. At Intel's 2023 Q2 financial report conference call, the company emphasized that PSG achieved record breaking revenue for the third consecutive quarter. The group has been delivering products according to its product roadmap, including the Intel Agilex with R-Tile chips launched in the second quarter ® 7. Bringing customers the first FPGA with PCIe 5.0 and CXL functionality, as well as the only FPGA with hard intellectual property (IP) support for these interfaces.

Previously, Intel Mobileye successfully completed its IPO in 2022, and Bain Capital and TSMC also announced investments in Intel subsidiary IMS. In summary, these transactions highlight Intel's high focus on advancing its IDM 2.0 strategy.

On February 14, 2022, AMD announced the completion of its acquisition of Xilinx, which was included as a wholly-owned subsidiary. When it was rumored that AMD was about to acquire Celine, some in the industry commented that Intel and NVIDIA had an even stronger competitor.

In December 2015, Intel completed the largest acquisition in the company's history - the acquisition of programmable logic device manufacturer Altera, making it the second largest programmable logic device manufacturer through this acquisition. But now, Intel will separate the PSG department, including the FPGA business, which may cause another round of heated discussions.