Intel Corporation(INTC.US) plans to spin off its venture capital division and rename it to Intel Corporation Capital.

Once the dominant market player in chip manufacturing, Intel Corporation (INTC.US) is currently working to revitalize its business and financial situation, planning to rename its venture capital department and transform it into an independent fund. According to a statement released on Tuesday, this chip manufacturer will continue to serve as the "anchor investor" for the "new company." The department is currently known as Intel Corporation Capital (Intel Capital) and holds over $5 billion in assets. Intel Corporation's venture capital department is one of the most well-known corporate investment tools in Silicon Valley's history, investing over $20 billion in companies over the past 30 years. Historically, the department has focused on technologies it believes will drive the development of the PC and server industries, with a significant portion of its revenue coming from these two sectors. Investments by Intel Capital include ASML Holding NV ADR (ASML.US), Red Hat Inc., and VMware. The move announced on Tuesday aims to give the department greater independence and allow it to raise funds freely from other sources. In a statement, Intel Corporation said: "Independent operations are expected to begin in the second half of 2025, at which point Intel Corporation Capital will operate under a new name. The existing Intel Corporation investment team will transition to the new company, and business operations will continue as usual throughout the transition period." It is understood that Intel Corporation is struggling due to market share losses and rapid changes in the chip industry dominated by NVIDIA Corporation (NVDA.US). The company's decline has forced layoffs and other cost-cutting measures to preserve cash. This predicament also led to the dismissal of CEO Pat Gelsinger at the end of last year. The company is currently seeking his replacement. Intel Corporation is also taking other actions to narrow its business scope and unlock capital. According to insiders, this includes seeking investors for its subsidiary Altera, which produces programmable chips and was acquired for around $17 billion in 2015. Another acquisition by Intel Corporation, autonomous driving technology company Mobileye Global Inc. (MBLY.US), went public in 2022. Although Intel Corporation retains ownership of most of its business, Mobileye is seen as a potential source of cash for this chip manufacturer.