Intel Kills Optane Reminiscence Enterprise Fully, Pays 9 Million to Exit

Intel Kills Optane Reminiscence Enterprise Fully, Pays $559 Million to Exit

Intel’s Q2 2022 earnings report at this time was uncharacteristically disappointing, nevertheless it additionally hid a brand new announcement: Intel is ending its Optane enterprise solely. In the course of the earnings name, Intel CEO Pat Gelsinger clarified the vaguely worded announcement within the earnings paperwork, confirming that Intel will wind down its Optane enterprise. The transfer incurs a $559 million stock impairment/write-off. We reached out to Intel for touch upon the matter: 

“We proceed to rationalize our portfolio in help of our IDM 2.0 technique. This consists of evaluating divesting companies which are both not sufficiently worthwhile or not core to our strategic targets. After cautious consideration, Intel plans to stop future product growth inside its Optane enterprise. We’re dedicated to supporting Optane clients by means of the transition.”— Intel’s spokesperson to Tom’s {Hardware}.

Gelsinger mentioned this marks the sixth non-core enterprise Intel has bought since his arrival, together with the latest sale of its drone enterprise to Elon Musk’s brother together with the sale of the SSD storage unit to SK hynix, producing $1.5 billion for funding in areas which are core to Intel’s enterprise. 

Optane

(Picture credit score: Intel)

Intel used Optane reminiscence to create each storage and reminiscence merchandise, and it has lengthy been rumored to be on the chopping block. At its debut in 2015, Intel and companion Micron touted the underlying tech, 3D XPoint, as delivering 1000x the efficiency and 1000x the endurance of NAND storage, and 10x the density of DRAM.

Intel had already stopped producing its Optane storage merchandise for consumer PCs, which is smart as it’s at first of a multi-year journey to promote its NAND enterprise to SK hynix. Nonetheless, Intel initially retained its reminiscence enterprise for the info heart, together with its persistent reminiscence DIMMs that may perform as an adjunct to most important reminiscence — a functionality solely Intel supplied. These merchandise will now come to an finish, too.

Gelsinger cited an trade shift to CXL-based architectures as a purpose for winding down the Optane enterprise, mirroring Intel’s ex-partner Micron’s sentiments when it exited the enterprise final 12 months. Micron was the only real high-volume fabricator of 3D XPoint, the reminiscence Intel makes use of to make Optane, and the corporate later bought its 3D XPoint fab to Texas Devices, leaving Intel with no manufacturing amenities of its personal.

Business watchers reported that Intel was serving present Optane clients from its stock that it amassed from Micron earlier than the fab was closed, however that it wasn’t actively fabricating the reminiscence. Intel reportedly had a number of years of stock available, maybe explaining the magnitude of the $559 million write-off.

Apparently, we noticed the preliminary checks of Intel’s next-gen DDR5 Optane reminiscence modules, codenamed Crow’s Move, emerge simply final week. These DDR5 modules have been deliberate to debut with Intel’s oft-delayed Sapphire Rapids chips later this 12 months. That clearly will not come to cross. 

As an alternative, Intel will successfully pay $559 million to place an finish to its Optane enterprise.  

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