Intel Dumps Server Building Business, Sells it to MiTAC
Intel has confirmed its plans to exit another non-core business, servers. The chipmaker is exiting its server-building business and plans to sell it to his MiTAC, a major Taiwanese electronics maker and Tyan’s parent company.
Dell, HP, and Inspur are the juggernauts of the server market, and Intel is one of the little fish in the pond. Chip makers have multiple sides, one of which is building server products. Intel has cut a good chunk of its non-core business since his CEO Pat Gelsinger took over in 2021. More notable exits include Intel’s Optane business, SSD business, network switch business, and the company’s recent exit from his 5G modems. Intel has a strong server product portfolio, but the chipmaker’s strength is clearly in selling silicon.
“In line with Intel’s continued commitment to prioritizing investments in its IDM 2.0 strategy, we have made the difficult decision to exit the Data Center Solutions Group (DSG). MiTAC, a provider and long-time ODM partner of DSG, will acquire the rights to manufacture and sell products based on our designs, to support the DSG team and its stakeholders during this transition period. We are focused on making sure we do it,” said an Intel spokesperson. serve the home (opens in new tab).
Intel has sold very few server units in recent years, and DSG has rarely brought significant revenue to the company. So it shouldn’t come as much of a surprise that the server building business is the next big thing. Intel posted a net loss of $644 million in the fourth quarter of its 2022 fiscal year, so this latest exit from building servers is unlikely to be the last cost-cutting move the company will take. .
Intel recently launched its long-awaited 4th generation Sapphire Rapids Xeon processors and several Sapphire Rapids-based servers. But now it looks like these are the last Intel servers on the market. Or perhaps the chipmaker is just white-boxing them for his OEM to re-badge them with. Either way, Intel moved that server design to his MiTAC. MiTAC’s subsidiary Tyan certainly puts these designs to good use.