Intel Shifts Gears: Foundry Services Take the Spotlight
Semiconductor-giant (NASDAQ: INTC) is headed in a new direction. Making its in-house manufacturing processes available to other chip designers is no longer a side gig for the company but a core strategy. Intel's foundry service will soon be a separate business segment for reporting purposes, and the bulk of its early revenue will come from producing the company's own processors.
Speaking at an online investor presentation about Intel's internal foundry model on Wednesday morning, CFO David Zinsner outlined several changes to this business unit's future operations.
The revamped organization should also help Intel avoid the classic mistake of adding new features or redesigning important chip sections at a late stage in the product-development process. These potentially risky and costly requests may have been easy to make in the past but will come with concrete costs in the new system.
Source Fool.com
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