SANTA CLARA, Calif., April 2, 2024 – Intel Corporation today outlined a new financial reporting structure that is aligned with the company’s previously announced foundry operating model for 2024 and beyond. This new structure is designed to drive increased cost discipline and higher returns by providing greater transparency, accountability and incentives across the business.
To support the new structure, Intel provided recast operating segment financial results for the years 2023, 2022 and 2021. The company also shared a targeted path toward long-term growth and profitability of Intel Foundry, as well as clear goals for driving financial performance improvement and shareholder value creation.
“Intel’s differentiated position as both a world-class semiconductor manufacturer and a fabless technology leader creates significant opportunities to drive long-term sustainable growth across these two complementary businesses,” said Pat Gelsinger, Intel CEO. “Implementing this new model marks a key achievement in our IDM 2.0 transformation as we hone our execution engine, stand up the industry’s first and only systems foundry with geographically diverse leading-edge manufacturing capacity, and advance our mission to bring AI Everywhere.”
The new operating model establishes a foundry relationship between Intel Foundry, the company’s manufacturing organization, and Intel Products, comprised of the company’s product business units. Launched at its inaugural Direct Connect event in February, Intel Foundry is the world’s first systems foundry for the AI era, offering full-stack optimization from the factory network to software.
The combination of Intel’s world-class foundry and product capabilities will leverage a more resilient, sustainable and secure source of supply while delivering cutting-edge solutions to customers through continuous technology improvements, reference designs and new standards.
New Reporting Structure
Beginning with the first quarter 2024, the company will present segment results aligned to the following operating segments: Client Computing Group (CCG); Data Center and AI (DCAI); Network and Edge (NEX); Intel Foundry; Altera, an Intel Company (formerly Intel’s Programmable Solutions Group); Mobileye; and Other. CCG, DCAI and NEX will collectively be referred to as Intel Products; Altera, Mobileye and Other will collectively be referred to as All Other.
Intel Foundry is a newly established operating segment that includes foundry technology development, foundry manufacturing and supply chain, and foundry services (formerly IFS). Under this new structure, Intel Foundry will recognize revenues generated from both external foundry customers and Intel Products, as well as technology development and product manufacturing costs historically allocated to Intel Products. The new Altera operating segment, which was previously reported under DCAI, follows its announced separation into a standalone business.