Intel Sells Server Business to MiTAC as Part of Its IDM 2.0 Strategy

Intel has recently announced that it will be selling its Data Center Solutions Group (DSG) to MiTAC, an IT solutions provider of edge-to-cloud computing. This move is part of Intel's IDM 2.0 strategy, which involves the prioritization of investments in future component and silicon technologies.

Intel's recent downsizing efforts include the removal of Optane, Barefoot network switches, and 5G modems from the company's offerings. The company has not been a major player in the server hardware marketplace, and as part of the IDM 2.0 strategy, it will offer the "right to manufacture and sell products based on Intel's designs" to MiTAC.

MiTAC is a longstanding ODM partner to DSG, making the company a suitable fit to take over Intel's server business. Intel's server systems, which sold internationally in regions such as South America, did not make a large enough footprint domestically to warrant continuing server manufacturing.

The move allows Intel to focus on its Foundry Services and increase research on improving and minimizing the size of the process node on a silicon chip, such as the 18A technology. While the selling of DCSG to MiTAC will take some time to complete, Intel is committed to supporting the DSG team and stakeholders during the transition.