The news pointed out that Intel announced its financial report for the fourth quarter of 2022 in January this year, with total revenue of US$14 billion, a year-on-year decrease of 32%, which is also the lowest quarterly revenue since 2016. At the same time, the net loss was US$664 million, a year-on-year decrease of 114%, which is almost the largest single-quarter loss in Intel’s history. To make matters worse, Intel expects to continue to lose money in the first quarter of 2023, which means that Intel will have two consecutive quarters of losses for the first time in 30 years.
Recently, according to foreign media reports, Intel has decided to abolish its Data Center Solutions Group (DSG), which is responsible for the design and planning of the server business, and sell it to Taiwan MiTAC Computer. But the server processor Xeon series is still an independent department and will not be affected.
It is reported that Intel will continue to implement CEO Pat Gelsinger’s cost reduction plan, divest non-core businesses, and plan to sell the complete server business to Mitac, which is the Data Center Solutions Group (DSG). Intel’s complete server business does not account for a high proportion in the industry, and has little impact on its overall business. Mitac is expected to take over Intel’s complete server business in July, and Intel will ensure a smooth transition of the business.
When it announced its financial report for the third quarter of 2022 last year, Intel announced a plan for cost reduction and efficiency improvement. From now until 2025, it can cut costs by up to US$10 billion. Subsequently, Intel began a drastic reduction plan, including shelving the R&D center projects in Israel and Hillsboro, Oregon, the United States, stopping investment in the network and edge business (NEX), and reorganizing the accelerated computing and graphics department (AXG). Spin-offs, postponement of fab projects in the US and Germany, etc.
The latest progress in a series of slimming plans is to sell the complete server business to Mitac. An Intel spokesperson pointed out that Intel has made a difficult decision to exit the data center solutions business because of its continued efforts to prioritize investment in its IDM 2.0 strategy. Mitac said that it has cooperated with Intel for many years, and choosing to take over represents Intel’s recognition of Mitac’s quality and capabilities.
Post time: Apr-22-2023