In a stunning move, in my opinion, Intel sells its server business to MiTAC according to DataCenterDynamics. This means Intel will no longer sell any of its dedicated server hardware to customers. Instead, MiTAC, which is the parent company of Tyan, a Taiwanese electronics company.
Intel Sells Its Server Busines To MiTAC: The Details
When it comes to the details behind Intel’s decision to sell its dedicated server hardware we don’t know the numbers from the deal. However, as DataCenterDynamics states in its article, the sale doesn’t affect Intel developing and manufacturing its servers CPUs. Now MiTAC will have the designs for the various dedicated server hardware Intel created. Thus, the company can build the products and sell them to consumers.
In an official statement to ServeTheHome Intel said the following: “In line with Intel’s continued efforts to prioritize investments in its IDM 2.0 strategy, we have made the difficult decision to exit our Data Center Solutions Group (DSG). As part of this plan, MiTAC, an edge-to-cloud IT solutions provider and longstanding ODM partner of DSG, will have the right to manufacture and sell products based on our designs. We are focused on ensuring the DSG team and its stakeholders are supported during this transition.”
And the data center industry saw Intel exit various portions of the data center business. In mid-2022 the company closed down its Optane line. I went to a presentation about Optane memory and it impressed me. Unfortunately, I remember the storage memory line being quite expensive. And I wondered how companies could pay those high prices. According to the TechTarget article I linked companies didn’t buy it. Thus, Intel lost billions of dollars on Optane. In addition to closing Optane, the company exited the network switch business in late January of this year. I didn’t even know Intel made network switches. Now it makes sense while Intel sells its server business.
However, I knew Intel built and sold servers. They were popular in South America according to DataCenterDynamics. The servers “were a mixture of general use servers, and the company’s Xeon Platinum 9200-series CPUs for heavy duty and high-performance computing applications as well as systems with GPU and accelerator support.”