- The FPGA market is expected to grow at a CAGR of more than 9%, from $8 billion in revenues in 2023 to $11.5 billion by 2027
- Standalone operations for PSG may commence from Jan. 1, 2024
Intel Corporation has separated its Programmable Solutions Group operations into a standalone business.
By following this step, PSG will be able to showcase its ability, which fully accelerates its growth and more effectively competes in the Field Programmable Gate Arrays (FPGA) industry.
FPGA serves various markets, including the data center, communications, industrial, automotive, aerospace and defense sectors.
Intel also announced that Sandra Rivera, executive vice president at Intel, will assume leadership of PSG as chief executive officer; Shannon Poulin has been named chief operating officer.
Standalone operations for PSG may commence from Jan. 1, 2024, with ongoing support from Intel. Intel expects to report PSG as a separate business unit when it releases first-quarter 2024 financials. Over the next two to three years, Intel 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 program pilot, the relationship with IFS will also uniquely 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.”
“This is an incredibly exciting day 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 center and communications.”
Poulin added, “This is a significant inflection point for the PSG business – one that will enable us to build out a leadership end-to-end portfolio of FPGA products, while also making enhancements to our go-to-market strategy that will enable us to achieve market share growth. The investments we are making in the new company and the autonomy of execution is good news for our customers, partners and the entirety of the FPGA industry.”
According to a report, 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.