Intel is ending its server system design division

Intel is ending its Data Center Solutions Group (DSG). It is the latest victim in a series of restructurings under CEO Pat Gelsinger.

The company sells the blueprints for server system designs to Taiwanese electronics company MiTAC. Since Gelsinger took office, Intel has pulled out of many markets. That’s how it ended with Optane drives and motherboards. The discontinuation of the DSG will not affect the production of Xeon chips for servers.

Strategic cutting

Intel, like many other companies, is suffering from declining demand for PCs and PC components. That’s why Gelsinger previously announced that the company must “cut strategically.” Last year it was announced that Intel plans to lay off thousands of employees. The company wants to reduce spending by $10 billion a year from 2025.

MiTAC is a small player in the production of server systems. Its annual turnover in this industry was $ 75 million in 2021, compared to, for example, $ 12 billion that was brought in by giant Foxconn in this market.

Intel confirmed to ServeTheHome the previous rumors about the possible discontinuation of the Data Center Solutions Group.

Read also: Intel introduces new Xeon processors for workstations