06:47 AM EDT, 09/17/2024 (MT Newswires) -- Intel ( INTC ) plans to establish Intel Foundry as an independent subsidiary and temporarily pause projects in Poland and Germany, CEO Pat Gelsinger said in a letter to employees late Monday.

Gelsinger said that making Intel Foundry an independent business unit will provide "external foundry customers and suppliers with clearer separation and independence from the rest of Intel ( INTC )." This move will also give Intel ( INTC ) "the flexibility to explore independent sources of funding and optimize the capital structure of each business to maximize growth and shareholder value." While there will be no changes to leadership, Intel ( INTC ) plans to create an operating board for Intel Foundry, which will include independent directors. Gelsinger added that the primary focus for Intel Foundry is to enhance the company's capital efficiency.

Additionally, Gelsinger stated that Intel ( INTC ) will delay its projects in Poland and Germany by around two years based on anticipated market demand. Meanwhile, the company's Irish facility will remain its "lead European hub for the foreseeable future."

Intel ( INTC ) shares are up 6.6% in recent premarket trading.

Price: 22.31, Change: +1.40, Percent Change: +6.70