Intel Bets on Custom Silicon to Fuel Turnaround
Struggling semiconductor giant (NASDAQ: INTC) announced a flurry of management changes on Monday as the company embarks on an urgent turnaround effort led by CEO Lip-Bu Tan. Michelle Johnston, an Intel veteran and head of the product division, will depart the company. Kevork Kechichian, previously at Arm, will now lead the data center group as the company looks to regain market share. For the client computing group, Intel is turning to Jim Johnson, a 40-year Intel employee.
The most meaningful announcement, though, was the formation of a new Central Engineering Group. This group will be led by Srini Iyengar, who joined Intel earlier this year from Cadence Design Systems. Iyengar will be focused on building a new custom silicon business to help external customers design their own chips.
While Intel has collaborated on custom silicon projects in the past, most notably a deal with Amazon last year to produce a custom AI fabric chip and custom Xeon 6 server central processing units (CPUs), the creation of a new group puts custom silicon front and center.
Source Fool.com
Intel Corp. Stock
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