Intel Splits Off RealSense Robotics Wing to Zoom in on Chip Making
Chip maker Intel Corp is cutting off its RealSense robotics arm as a new plan to trim its work. This Intel part, which made cams and sensors for robots, got $50 million in funding to start on its own. CEO Lip-Bu Tan, driving this, wants to cut costs and boost focus on making semiconductor chips.
Big Plan During Tough Times
The move is a big part of CEO Lip-Bu Tan's bid to get Intel faster. This plan seems to touch its foundry work too. Reports say, Intel might keep some old promises but may stop wide use of its new 18A chip process to focus more on the 14A process for its foundry buyers. This shows a pull-back from matching top rivals like TSMC right now.
Bucking the Trend in a Hot Market
Stepping out of RealSense stands out amid high hope for robot tech. Investment firm Morgan Stanley sees this market at $5 trillion by 2050, and Tesla’s Elon Musk keeps talking about moving from cars to robots. By letting go of RealSense, key in the robot part chain, Intel opts out of this huge chance to stick to its main chip work.
Intel's CEO Talks on the New Plan
The shifts come as CEO Lip-Bu Tan admits Intel is not even in the top 10 chip firms and has lost its top spot.
- Lost Shots: Intel missed out on the big AI wave, now ruled by groups like NVIDIA. Past CEO Patrick Gelsinger wished he moved faster on AI tech.
- Weak Spots: Intel's buyer part, and big time, its foundry work, have not met hopes, leading to tough times.
- Big Moves: Tan hints at big changes, like cutting jobs to make a "leaner, meaner" Intel. He feels Intel will play a minor, edge AI role in the short term in buyer chips instead of fighting at the top.
This frank look hints at big shifts as Intel aims to get more stabile and fight better in the current chip scene.