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Sandra Rivera, who leads the chip giant’s data centre and AI division, will take over as CEO of the new standalone PSG business.
Intel is spinning out its programmable chip business as a standalone operation starting next year, with plans to conduct an initial public offering (IPO) over the next two to three years.
In an announcement yesterday (3 October), Intel said that it intends to operate its Programmable Solutions Group (PSG) as a standalone business to give it the “autonomy and flexibility” it needs to fully accelerate its growth and compete effectively.
Programmable chips are designed for specific tasks and used across a range of industries, including data centres, communications, industrial, automotive, aerospace and defence. PSG was created after Intel acquired chip business Altera for $16.7bn in 2015.
Intel also announced that Sandra Rivera, an executive vice-president at the chip giant, will become the CEO of PSG while Shannon Poulin will take over as chief operating officer.
Operations for the standalone PSG business will begin on 1 January, and Intel will start reporting PSG as a separate business from the first-quarter earnings calls next year.
Intel wants to conduct an IPO for PSG over the next two to three years and “may explore opportunities” with private investors to accelerate the business’s growth while retaining a majority stake.
Intel CEO Pat Gelsinger said that this will give PSG the “independence” it needs to keep growing in the market it competes in, allowing it to differentiate itself from Intel Foundry Services and allowing Intel product teams to “focus on our core business and long-term strategy”.
Rivera is currently leading the Data Center and AI (DCAI) Group at Intel, a position she will continue in until a new leader is found.
“Sandra has proven herself by reinvigorating DCAI, placing it on a path for success. I am confident she will bring PSG that same dedication, energy and customer commitment.”
“Reestablishing PSG as a standalone business will enable us to unleash our full potential as we drive for leadership in this demanding and essential part of the semiconductor industry,” added Rivera.
“Our strategic relationship with Intel will continue to be an advantage as it gives us maximum flexibility in how we address fast-growing markets like automotive and data centre and communications.”
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