Intel intends to shut down its Optane memory business while incurring a $ 559 million inventory write-off.
Optane is a type of storage system designed to increase the performance of SATA hard drives (HDDs) and slower SSDs by combining storage and RAM.
Intel CEO Pat Gelsinger attributed the decision to close Optane to a broader industry transition to Compute Express Link (CXL) architectures.
The announcement came along with a disappointing set of quarterly results; The semiconductor giant’s revenues in the second quarter fell 17% to $ 15.3 billion.
The Optane business is not the only one Intel is emerging from. In December 2020, Intel sold its SSD business to South Korean hardware company SK Hynix.
The company also sold its stake in the drones by selling more than 9,000 drones to Elon Musk’s brother Kimbal Musk, which will be used to launch a new light show company, Nova Sky Stories.
Unfortunately, the effects of all this improvement may not be felt by the end consumer in the near term.
It has been confirmed that Register register that Intel is planning raise prices (opens in a new tab) for “most of their microprocessors and chip peripherals” and that these price increases could be as high as 10% to 20%.
“We continue to rationalize our portfolio to support our IDM 2.0 strategy,” an Intel spokesman told our sister site. Tom’s gear (opens in a new tab). “This includes an assessment of the divested businesses that are either not profitable enough or not in line with our strategic goals.”
“After careful consideration, Intel plans to stop developing future products as part of its Optane business.”
He added: “We are committed to supporting Optane customers during the transition period.”
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