Intel will introduce an internal foundry model for external customers and product lines

Intel CEO Pat Gelsinger sent a statement to all employees on October 11, 2022, announcing the introduction of an internal foundry model for external customers and Intel product lines, and created the “IDM 2.0 Acceleration Office” under the leadership of Stuart Pann, Senior Vice President of Corporate Planning, to better execute its IDM 2.0 strategy.

According to the description in the statement, the internal foundry model means the establishment of consistent processes and systems between Intel’s business units, design, and manufacturing teams which allows Intel to better identify and address structural inefficiencies in the current model, and it also allows Intel’s product line and external customers to align to a similar position.

Image: Intel

Intel will also create a foundry accounting model covering manufacturing, technology development, and foundry services to increase the transparency of financial execution and allow Intel to benchmark the performance of the foundry segment. In addition to leading the newly created “IDM 2.0 Acceleration Office,” Stuart Pann will serve as Chief Business Transformation Officer, reporting to Chief Financial Officer Dave Zinsner, and joining the executive leadership team.

Intel will announce its financial report for the third quarter of 2022 on October 27, but there are media reports that Intel will announce layoffs before and after the financial report, involving thousands of employees, of which the marketing department will be the most affected, and the proportion of layoffs may be about 20%. Intel hopes to respond to the deteriorating PC market by cutting costs.