Intel To Separate Its Programmable Solutions Group

(RTTNews) - Intel Corporation (INTC) said on Wednesday that it intends to separate its Programmable Solutions Group or PSG operations into a standalone business.

"This will give PSG the autonomy and flexibility it needs to fully accelerate its growth and more effectively compete in the FPGA industry, which serves a broad array of markets, including the data center, communications, industrial, automotive, aerospace and defense sectors," the company said.

Over the next two to three years, Intel plans an IPO for PSG and to explore opportunities with private investors to accelerate the business's growth, with Intel retaining a majority stake.

Operations of PSG as standalone will commence with effect from January 1, 2024. Intel expects to report PSG as a separate business unit when it releases first-quarter 2024 financials.

Sandra Rivera, Executive Vice President of Intel, will lead PSG as CEO, whereas Shannon Poulin will become COO.

According to third-party estimates, the FPGA market is expected to grow at a compound annual growth rate of over 9 percent, from $8 billion in revenues in 2023 to $11.5 billion by 2027.