Intel announced Wednesday that it is splitting its graphics chips unit into two units as part of a business restructuring to better compete against Nvidia or Advanced Micro Devices.
The company stated that the consumer graphics unit will be combined and Intel’s customer computing group, which produces chips for personal computers. Accelerated computing teams will also join the data centre and Artificial Intel (AI), business.
This is Intel’s second attempt to increase accelerated computing. Accelerated computing is a segment that has been dominated by Nvidia, as AI usage surges.
Matthew Bryson, Wedbush Securities analyst, stated that “I don’t think it changes much (if any) except for aligning the products to the respective sales organisations they fit with vs having them as discrete segments.”
Raja Koduri who was the head of the graphic chips unit will resume his role as chief architecture and supervise the company’s long term technology and chip design strategies.
Koduri, who led the graphics technology ventures at iPhone maker Apple as well as AMD joined Intel in 2017.
reported earlier this month that Intel had abandoned its original goal of opening a Magdeburg, eastern Germany chip factory by 2023’s first half. Volksstimme, a regional newspaper reported that Intel wanted more public subsidies.
This plant is central to German, European Union plans to strengthen continent’s resilience through more manufacturing locally following the COVID-19 pandemic. The invasion of Ukraine by Russia highlighted the dangers of long, global supply chains.
The newspaper stated that the US company had been affected by rising energy and raw material prices. The paper stated that prices are now closer to EUR 20billion (roughly Rs 17,000 crore) than what Intel originally planned for.
(c), Thomson Reuters 2022
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