Intel announces the spin-off of its programmable solutions division PSG, with plans for an independent IPO in the future

Intel announced today that it will spin off its Programmable Solutions Group (PSG) and operate it as an independent business

The business unit is responsible for developing Intel's Agilex, Stratix and other FPGA products. It will become an independent entity under Intel Corporation starting in the first quarter of 2024, with the long-term goal of selling part of the business in an IPO two to three years later.

Intel PSG will transform into an independent business unit in early 2024, and

Intel Executive President Sandra Rivera will serve as PSG’s new CEO , Rivera is currently the general manager of Intel’s Data Center and Artificial Intelligence Group (DCAI). During this time, Rivera will also continue in his role as DCAI until Intel finds a replacement.

#The spinoff of PSG is Intel’s latest move to restructure the company’s multifaceted businesses to focus on its core competencies of silicon lithography and chip design force. According to statistics from this site, since the appointment of current CEO Pat Gelsinger two years ago, Intel has sold or divested several business units, including its SSD business, NUC mini PC business, Mobileye ADAS unit, etc., while also investing in Intel's foundry services (IFS) wafer fab division has made significant new investments.

With respect to the independent PSG business unit,

Intel is eyeing a very similar trajectory to Mobileye, where Intel would retain a majority stake while still freeing up the business unit to operate more independently . This strategy has worked well for Mobileye, which continued to grow during its successful IPO last year, and Intel hopes they can do it again with a standalone PSG business.

Intel admitted that it mismanaged PSG. Although PSG achieved a series of record quarterly financial results,

But Intel believes that PSG's real advantages in FPGAs such as industrial, automotive, defense and aerospace. High-growth, high-margin markets are underserved. Since being acquired by Intel in 2015, and especially over the past few years as a formal part of DCAI, Intel's PSG has been focused on data center solutions to the detriment of other business units.

This is a very exciting day for me and the PSG team. Re-establishing PSG as an independent business will allow us to realize our full potential and pursue leadership in this demanding and essential segment of the semiconductor industry," Rivera said. Our strategic collaboration with Intel will continue to be an advantage for us as It provides us with the greatest flexibility in responding to rapidly growing markets such as automobiles, data centers and communications

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