Intel, one of the largest players in the semiconductor sector, has decided to end its automotive chip manufacturing activities, which it started in 2021. In an internal memo sent to employees on Tuesday, the company announced that it would abide by existing manufacturer and supplier contracts, but that the internally sourced automotive platform would be completely closed.

Intel has closed its automotive department

The automotive department does not account for a large portion of the company’s total revenues. However, Intel-signed chips are used in more than 50 million vehicles worldwide. These chips are used in different areas such as infotainment systems, electric vehicle power management and advanced driver assistance systems. Despite this, the unit’s weight in the overall portfolio remained limited.

The company’s new management strategy aims to redirect the focus to core business lines. In this context, more resources will be allocated to core areas such as client processors and data center solutions. Intel is preparing for a new wave of layoffs that could cover up to 20 percent of its production staff during this transformation process.

The marketing department will also be affected by the restructuring process. Intel is transferring most of its activities in this area to consulting firm Accenture. The company plans to implement AI-based systems in its marketing operations later.

CEO Lip-Bu Tan has been continuing his rhetoric of “focusing on core areas” since the day he took office. The closure of the automotive department drew attention as the most concrete example of this approach. So what do you think about this? You can share your views with us in the comments section below.