Intel announced on Tuesday that it will rename its internal investment fund and make it a distinct entity. This is the most recent in a slew of cost-cutting measures as the corporation looks to restructure its operations.
As it is now called, Intel Capital makes investments in startups and emerging sectors to promote the growth of new industries and technology, which may increase demand for Intel’s computer chips. It oversees a portfolio of over 170 companies with $5 billion in assets, mostly in the fields of cloud computing, electronics, and emerging semiconductor technology.
However, Intel has been looking for methods to offload costly financial commitments as its main business struggles. Rival chip designers like AMD and Nvidia, as well as larger chip manufacturers like Taiwan Semiconductor Manufacturing Co., are fiercely competing with Intel and have seized market dominance in important industries.
The corporation claimed that by separating Intel Capital, it will be able to look for outside investors and return its attention to its core business of creating and designing semiconductors.
According to Intel Chief Financial Officer David Zinsner, who also serves as the company’s acting co-CEO, “this step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”
Intel stated that following the spinoff, it will continue to be an anchor investor.
Although the fund was founded in 1991 and is primarily based in Silicon Valley, Intel Capital has always maintained a sizable presence in the chipmaker’s Hillsboro campus.
According to Intel, it plans to rename and spin off Intel Capital sometime in the second half of the year. It stated that the managers and staff of the fund will transfer to the new company.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or [email protected].
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