Intel is putting its Data Center Solutions Group (DSG) out to pasture. It is the latest casualty in a series of restructurings under CEO Pat Gelsinger.
The company will sell the blueprints for server system designs to Taiwanese electronics company MiTAC. Since Gelsinger took office, Intel has withdrawn from many markets. For example, it discontinued Optane drives and motherboards. DSG’s demise does not affect the production of Xeon chips for servers.
Like many other companies, Intel is suffering from declining demand for PCs and PC components. That is why Gelsinger announced earlier that the company must “make strategic cuts. Last year, it was announced that Intel plans to lay off thousands of employees. The company wants to cut spending by $10 billion a year by 2025.
MiTAC is a minor player in the production of server systems. Its annual sales in this industry constituted a revenue of $75 million in 2021, compared with, for example, $12 billion earned by giant Foxconn in this market.
Speaking with ServeTheHome, Intel confirmed earlier rumours about the possible discontinuation of the Data Center Solutions Group.
Also read: Intel introduces new Xeon processors for workstations