Intel announces plans to separate Programmable Solutions Group as standalone biz
Justin Sullivan
Intel (NASDAQ:INTC) announced on Tuesday that it intends to separate its Programmable Solutions Group, or PSG, into a standalone operation, effective January 1 in an effort to continue to simplify its larger business.
The PSG group, which is responsible for Intel's push into high-performance communications and data center applications, will be led by Sandra Rivera when it becomes an independent company. Currently, Rivera is the general manager of Intel's Data Center and AI group.
Shannon Poulin will become Chief Operating Officer of PSG when it becomes a standalone company.
âOur 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," Intel CEO Pat Gelsinger said in a statement. "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.â 
Intel's PSG group generated record revenues for a third-consecutive quarter and has launched 11 of the 15 new products it said it would for 2023.
The field programmable gate array, or FPGA market, where Intel's PSG group competes, is expected to grow at roughly 9% per year from roughly $8B in 2023 to approximately $11.5B by 2027, Intel said, citing third-party estimates.
The divestiture of PSG follows Intel's (INTC) partial spin-off of Mobileye (MBLY), which occurred in October 2022. 
Intel (INTC) shares rose more than 2% in extended-hours trading on back of the news.
The company is slated to host a conference call at 5 p.m. EST to discuss the news.

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