Finance Associated Press, September 17th (Editor Malan) Intel's overall plan is set. Its CEO, Pat Gelsinger, announced in a statement that the company has adjusted the layout of its chip outsourcing business and secured an important client in hopes of turning losses into profits.

Specifically, Intel will spin off its chip outsourcing department into an independent subsidiary and add a new board of directors for the operation. According to Gelsinger, the leadership of the outsourcing business will not change.

In addition, Gelsinger also stated that Intel will suspend its chip manufacturing projects in Poland and Germany, and consider withdrawing from its chip packaging and testing business in Malaysia.

Intel previously committed to investing $36 billion in building chip factories in Germany, $4.6 billion in Poland, and $7 billion in Malaysia. However, Intel is continuing its projects in the factories in the states of Arizona, Oregon, New Mexico, and Ohio in the United States.

Intel also plans to sell a portion of the shares it acquired in Altera, the programmable chip company, in 2015. According to Gelsinger, this is the most important transformation for Intel in over forty years, and he hopes to use this opportunity to build a stronger Intel for the next few decades.

The Triumph of the Outsourcing Business?

The change in Intel's chip outsourcing business is undoubtedly one of the most closely watched market trends. Gelsinger believes that after the business is spun off, it will be able to assess independent sources of funding and introduce external financing.

In the past two years, Intel has spent about $25 billion annually on foundry business, which has become a major burden for Intel. On the other hand, Intel hopes to revive its foundry business to achieve the ambitious goal of manufacturing chips for other customers and competing with Taiwan Semiconductor and Samsung Electronics.

Gelsinger added that Intel has signed an agreement with Amazon Web Services to jointly develop an AI chip using the 18A chip manufacturing process. In addition, Intel will also produce custom Xeon 6 processors for Amazon Web Services to strengthen the cooperation between the two companies.

This is undoubtedly a major advancement for Intel's contract manufacturing business. Gelsinger emphasized that Intel's contract trade channels have doubled, and its deal with Amazon has spanned many years, involving transactions of tens of billions of dollars, and may involve more chip designs, meaning that Intel is progressing towards becoming a world-class contract manufacturing service provider.

After the announcement of the business adjustment, Intel's stock price has experienced a large increase. As of the time of writing, Intel's stock price has risen by more than 6% in pre-market trading on Tuesday. However, the company's market cap has fallen by 56% so far this year.