Intel discontinues network switch business along with Pathfinder RISC-V program following grim Q4 2022 earnings

Intel is forced to discontinue support for some of its businesses as its financial situation is not looking too good after the Q4 2022 results. Revenue dropped 32% and gross margin is also 39.2% lower compared to Q4 2021. Additionally, the company reported a US$664 million loss, almost equaling the biggest loss of US$687 million recorded back in Q4 2017. Yearly figures also took a hit as revenue is down 20%, gross margin dropped from 55.4% to 42.6% and net income saw a sharp dive from US$19.9 to US$8 billion. Q1 2023 is expected to bring even lower revenue figures resulting from weak consumer and education PC demand, as well as OEM inventory reduction and declining datacenter demand.

These financial problems are prompting CEO Pat Gelsinger to rigorously re-evaluate the entire portfolio, especially focusing on non-core businesses. Gelsinger noted in the latest earnings report that he was able to provide US$1.5 billion in savings by exiting seven businesses. The seventh business to end up on the chopping block is the networking switch branch, as Gelsinger announced that Intel would no longer invest in NEX, yet would maintain full support for existing products and customers.

Even though Gelsinger did not mention any other similar measures, it looks like Intel is also discontinuing the RISC-V Pathfinder program initiated last year. This surprising move is announced only on the official Pathfinder site that now welcomes visitors with a message reading: “We regret to inform you that Intel is discontinuing the Intel® Pathfinder for RISC-V program effective immediately. Since Intel will not be providing any additional releases or bug fixes, we encourage you to promptly transition to third-party RISC-V software tools that best meet your development needs.”

It is still unclear if Intel wants to continue its collaboration with SiFive on the Horse Creek platform, which includes a RISC-V processor scheduled to be produced on the Intel 4 nodes this year. Tom’s Hardware points out that Intel made some other RISC-V investments that hang in the balance, including a US$1 billion Foundry Services fund dedicated to help other companies with their X86 or RISC-V designs, plus a US$426 million investment in the Barcelona Supercomputing Center for the development of zetta-scale supercomputers and AI applications.

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