Intel Shuts Down Automotive Processor Division

Intel has announced the closure of its automotive processor division, as detailed in a memo seen by The Oregonian sent to employees. The company plans to lay off “most” of the workforce in this division, indicating a strategic shift towards its “core client and data center portfolio.” This decision marks a significant change in Intel’s business focus.

In the memo, Intel stated, “As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.” The company has not yet responded to requests for comment from The Verge.

Intel has made substantial investments in its automotive business over the years, developing chips that power various components of vehicles, including infotainment systems, instrument clusters, and other critical controls. The technology developed by Intel has been integrated into more than 50 million vehicles, and until recently, the company appeared poised to expand its automotive offerings. Last year, Intel announced it announced new AI-enhanced chips for cars, aimed at enhancing vehicle navigation systems and voice assistant capabilities. Additionally, the company revealed plans to bring its Arc GPU to cars.

In 2017, Intel acquired the self-driving car technology company Mobileye for $15 billion Intel also acquired. Although Mobileye operates as a standalone entity, Intel retains a majority stake in the company, which has continued to innovate in the autonomous vehicle space Mobileye later went public.

Intel’s newly appointed CEO, Lip-Bu Tan, indicated that the company would need to “reduce the size” of its workforce in the second quarter of 2025 as part of broader efforts to realign the chipmaker’s business strategy. This announcement comes alongside news of impending layoffs in Intel’s foundry business said in April that the company. Furthermore, a recent WARN (Worker Adjustment and Retraining Notification) notice in California revealed that according to The Oregonian 107 employees at its Santa Clara headquarters would be affected by these layoffs suggests layoffs impacting.

The decision to shut down the automotive division reflects a growing trend among technology companies to streamline operations and focus on their most profitable sectors. As the automotive industry increasingly integrates advanced technology, companies like Intel are reassessing their roles in this rapidly evolving market.

Intel’s automotive division had previously been seen as a key player in the development of smart vehicle technologies. However, with the shift in focus, it remains to be seen how this will impact the company’s overall strategy and its position in the automotive technology landscape.

As Intel navigates these changes, stakeholders will be closely monitoring the company’s next steps and how it plans to leverage its existing technologies in other sectors. The automotive industry continues to be a significant area of interest for many tech companies, and Intel’s exit from this space may open opportunities for competitors.

In conclusion, Intel’s decision to wind down its automotive processor division marks a pivotal moment for the company as it seeks to concentrate on its core business areas. The implications of this move will likely resonate throughout the tech and automotive industries as companies adapt to the changing landscape.