According to Intel 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 centre, communications, industrial, automotive, aerospace and defence sectors.
Intel also announced that Sandra Rivera, executive vice president at Intel, will assume leadership of PSG as chief executive officer, while Shannon Poulin has been named chief operating officer.
Standalone operations for PSG are expected to begin Jan. 1, 2024, with ongoing support from Intel. Intel said that it expects to report PSG as a separate business unit when it releases first-quarter 2024 financials.
Over the next two to three years, Intel also intends to conduct an IPO for PSG and may explore opportunities with private investors to accelerate the business’s growth, with Intel retaining a majority stake.
The two companies will remain strategically aligned, including continuing PSG’s relationship with Intel Foundry Services (IFS), as they work together to address key areas of the FPGA market. Building on PSG’s highly successful Supply Resilience programme pilot, the relationship with IFS will also enable PSG to give customers greater predictability of supply aligned to their needs, ensuring a more resilient supply chain.
“Our intention to establish PSG as a standalone business and pursue an IPO is another example of how we are consistently unlocking more value for our stakeholders. This will give PSG the independence it needs to keep growing share in the FPGA market, differentiating itself with capacity and supply resilience from IFS, and allowing Intel product teams to focus on our core business and long-term strategy,” said Intel CEO Pat Gelsinger. “Sandra has proven herself by reinvigorating DCAI, placing it on a path for success. I am confident she will bring PSG that same dedication, energy and customer commitment.”
Rivera has a track record of delivering high-impact transformations. At the Network Platforms Group she advanced breakthrough ways to integrate silicon and software to create greater customer value and evolve network infrastructure to Intel-based solutions.
“This is an incredibly exciting for me and the PSG team. Reestablishing PSG as a standalone business will enable us to unleash our full potential as we drive for leadership in this demanding and essential part of the semiconductor industry,” said Rivera. “Our strategic relationship with Intel will continue to be an advantage as it gives us maximum flexibility in how we address fast-growing markets like automotive and data centre and communications.”
According to third-party estimates, the FPGA market is expected to grow at a compound annual growth rate (CAGR) of more than 9%, from $8 billion in revenues in 2023 to $11.5 billion by 2027.
During Intel’s second-quarter 2023 earnings call, the company highlighted that PSG had delivered record revenues for a third consecutive quarter.
The group has been consistently delivering against its product roadmap, including the second-quarter launch of the Intel Agilex 7 with the R-Tile chiplet – bringing customers the first FPGA with PCIe 5.0 and CXL capabilities and the only FPGA with hard intellectual property (IP) supporting these interfaces.
PSG has already launched 11 of the 15 new products the team expects to bring to market in calendar year 2023.