Apr 14, 2023 16:00:00

Intel withdraws from server business, sells data center division to Taiwan's MiTAC

It turned out that Intel will close the Data Center Solutions Group (DSG), which has been in charge of the server business in-house, and sell the remaining assets to MiTAC , a Taiwanese electronics manufacturer.

BREAKING Intel Exiting the Server Business Selling to MiTAC

https://www.servethehome.com/breaking-intel-exiting-the-server-business-selling-to-mitac/

Intel Dumps Server Building Business, Sells it to MiTAC | Tom's Hardware

https://www.tomshardware.com/news/intel-dumps-server-building-business-sells-it-to-mitac

Since around 2022, Intel has been organizing non-core businesses in quick succession. For example, in the second quarter financial report announced in July 2022, it was

announced that the Optane brand, which had been developed as the main memory of servers for data centers, would be terminated, and the fourth quarter financial results in January 2023. announced that it would stop investing in manufacturing lines for network switching products.

According to the server news site ServeTheHome, there have been rumors in the industry that Intel is considering withdrawing from the server business. ServeTheHome reached out to Intel as the rumors became more real.

In response, Intel said, 'With our continued commitment to prioritizing investments in our IDM2.0 strategy, we have made the difficult decision to close DSG. MiTAC, an Edge-to-Cloud (operating cloud in a facility other than a data center) IT solutions provider, will have the rights to manufacture and sell products based on our designs. We are focusing on ensuring that the DSG team and its stakeholders receive support while it takes place,' he said, confirming his withdrawal from the server business.

MiTAC is a Taiwanese electronics company with a subsidiary, TYAN, which is strong in server products.

by Solomon203

Server products are a market where major manufacturers such as Dell, HP, and Inspur are competing fiercely, and it is a field where competition is fierce and it is difficult to make profits. Among them, Intel provided servers equipped with its own CPU for high durability and high performance needs and gained popularity mainly in South America, but it did not become mainstream. In particular, in the most recent financial results, it posted a deficit of 661 million dollars (approximately 86 billion yen). I'm here.

Intel's sales in the fourth quarter of 2022 fell by 32% year-on-year, the data center and AI fields dropped significantly and the stock price fell by more than 9%-GIGAZINE

Tom's Hardware, an IT news site that covered this news, said, ``Intel hardly sold server units, and DSG did not contribute much to the company's revenue. It's not that shocking that Intel has posted a large loss in the fourth quarter of 2022, and we don't think this thoroughgoing from the server business will be the last cost-cutting measure for the company. It's hard,' he commented.