Chip designer Intel Corporation has decided to spin off its robotics business RealSense, which will raise $50 million in funding. RealSense announced the spinoff earlier today, and the move is part of Intel CEO Lip-Bu Tan's bid to streamline his company and shed weight to allow Intel to compete in the semiconductor manufacturing industry. However, the spinoff of a business that targets the humanoid robot market appears to go against bold predictions made by investment banks and Elon Musk of robots representing a multi-trillion dollar opportunity over the next couple of decades.
Intel Spins Off Robotics Business In Bid To Streamline Operations
RealSense, the former Intel business, develops cameras and sensors that are typically used in robotic applications. The firm closed a $50 million Series A funding round as part of its separation from Intel in a bid to lower the chip manufacturer's operating costs and streamline its business. Intel's new CEO, Lip-Bu Tan, has continued his predecessor's approach of reducing the firm's workforce and refocusing the business on chip manufacturing.
Recent media reports have also suggested that Intel might choose to skip introducing its leading-edge 18A manufacturing process to external customers as part of its Intel Foundry business. Intel had originally planned to offer 18A to chip designers in a bid to compete with Taiwan's TSMC. However, while the firm might execute some existing external commitments with the technology, it will focus on 14A for its foundry business, suggest reports.
Intel's decision to spin off its robotics business also goes against sheer optimism for the humanoid robot industry espoused by Morgan Stanley and Elon Musk. Morgan Stanley estimates that the global humanoid robot market will be worth $5 trillion by 2050 as the robots will permeate a variety of industries, such as manufacturing and logistics. Musk, weary of Tesla's weak vehicle deliveries, has also stressed on multiple occasions that he aims to pivot the firm from cars to robots in the future.
However, Intel, it seems, has decided to stick with its core chip manufacturing strength. RealSense's cameras are a key part of the robotics supply chain as they enable the machines to perceive and interact with the world around them.
Former Intel CEO Patrick Gelsinger has also lamented not introducing AI products quickly to help compete with NVIDIA. NVIDIA is the world leader in AI GPUs, and CEO Jensen Huang has also stressed on multiple occasions that his firm GPUs will also play a key role in developing humanoid robots. Robotics are among the leading-edge industries that are seeing global competition, with industry reports suggesting that the US lags behind Chinese prowess in the area.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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