Intel (INTC) has announced plans to spinoff its programmable chip business and take it public through an initial public offering (IPO).
The microchip and semiconductor maker said in a news release that it will separate its Programmable Solutions Group (PSG) from its core business.
The company said the spinoff will help “Intel product teams to focus on our core business and long-term strategy.”
Intel acquired the programmable chip business when it bought Altera for $16.7 billion U.S. in 2015. Altera was a leader in field-programmable gate array (FPGA) microchips that are used in in the industrial, automotive, and defense sectors.
Intel said the restructuring will give the Programmable Solutions Group the ability to improve its growth and compete more aggressively in the field-programmable gate array market.
The Programmable Solutions Group’s standalone operations will begin on January 1 of next year, and Intel will report PSG’s financials as a separate business unit when it reports its first quarter 2024 financial results.
Intel executive Sandra Rivera will become the chief executive officer (CEO) of the Programmable Solutions Group.
Intel said the IPO for PSG should occur over the next two years and that it may also look at opportunities to divest a minority stake in the business to private investors.
Last year, Intel completed a successful IPO of its Mobileye Global (MBLY) business unit, which makes microchips and software for self-driving vehicles.
Intel’s stock has gained nearly 30% over the last 12 months and currently trades at $35.69 U.S. per share.
