In response to the company’s struggles in the automotive market, Intel plans to reduce its automotive semiconductor business and concentrate its management resources on PCs and data centers in the future.
Intel will shut down its automotive business, lay off most of the department’s employees
🟦 Intel to withdraw from automotive semiconductor business
Intel has announced in an internal document that it will phase out its automotive processor business and lay off many of the division’s employees. This will allow the company to focus its resources on its flagship client PCs and data center products.
- Announced that the company will reduce its automotive business within the Client Computing Group (CCG) and implement a transition with customers
- No impact on the autonomous driving-related businesses of subsidiaries such as Mobileye
- Intel chips have been installed in more than 50 million vehicles so far, but plans for the introduction of new products (AI-enhanced chips, Arc GPUs, etc.) in 2024 may be revised
🟦 Intel’s company-wide restructuring strategy
This decision was made as part of Intel’s company-wide restructuring strategy. New CEO Lip-Bu Tan has indicated that it will cut staff in the second quarter of 2025, and the company has also announced layoffs of more than 100 people at its headquarters in Santa Clara, California.
In the automotive industry, competitors such as NVIDIA and Qualcomm were ahead in chips for SDVs (software-defined vehicles), making it difficult for Intel, which was a latecomer, to make a profit. As a result of reviewing the areas to focus on in both manufacturing and design, it seems that the decision to withdraw from the automotive field has been reached.
🟦 Summary
Intel will withdraw from the automotive semiconductor market and will focus more on the PC and data center fields in the future.
There is still a way to get involved in automotive-related technologies through external companies such as Mobileye, and a more selective approach is expected in the future.
