Intel Exits Automotive Chip Business to Focus on Core Segments

Jul 1, 2025 (18 days ago)

Neutral

Intel Exits Automotive Chip Business to Focus on Core Segments

Intel is discontinuing its in-house automotive chip division and reducing related staff to focus on core segments such as foundry services, data centers, and AI-enabled client computing.

Discontinuation of Automotive Chip Business

Intel is winding down its automotive architecture business and laying off 15-20% of its global workforce to trim operating costs and boost liquidity2
The company will fulfill existing automotive contracts but shift its autonomous driving exposure to Mobileye, in which it holds a majority stake1

Focus on Core Operations

Intel's foundry business delivered $4.7 billion in Q1 revenue, outperforming expectations and supporting its IDM 2.0 strategy1
The company is investing in expanding its manufacturing capacity to accelerate its IDM 2.0 strategy and establish itself as a leading foundry2

Partnerships and Product Launches

Intel partnered with PC makers like HP to push AI-powered laptops, targeting shipments of over 100 million AI processors this year1
Mobileye is shifting to premium ADAS software and SuperVision packages, driving high-growth revenue, while Intel's EyeQ6 and EyeQ Ultra chips target high compute and full autonomous capabilities4

Financial Performance

Intel reported flat revenue of $12.67 billion in Q1 2025 and a 24% decline in net income to $580 million1
The company's gross margin declined to 39.2% from 45.1% a year ago, primarily due to impairment charges and restructuring costs3

Competitive Landscape

Intel faces intense competition from AMD and NVIDIA in the data center and client segments, with AMD expanding its margin through a favorable product mix and strong demand for high-end offerings3

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