Intel has officially announced that it’s shutting off its server business (motherboards/racks) and selling it off to MiTAC.

Intel relinquishes its Data Center Solutions Group to MiTAC to focus on future component and silicon technologies

Recently, we have seen many companies downsize, eliminate areas of low sales, or cut projects to save costs in 2023. However, Intel has had this planned since its announcement of the IDM 2.0 strategy created in 2021. Now, we are seeing more shifts from Intel, including the recent selling of its Data Center Solutions Group, which was recently sold to Tyan’s parent company MiTAC.

Before today’s news, Intel was removing certain aspects of the company, including Optane (costing the company $559M), Barefoot network switches from the company, and 5G modems created by the company. Intel was not vital in the server hardware marketplace, so as part of the IDM 2.0 strategy, the company offers the “right to manufacture and sell products based on Intel’s designs.” The involvement of MiTAC is essential as the company is an IT solutions provider of edge-to-cloud computing, as well as a current ODM partner to Data Center Solutions Group, reports the website ServeTheHome.

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.

— Intel spokesperson in a corresponence with ServeTheHome

Intel’s server systems had sold internationally during the previous decade in regions such as South America. Nationally, the company did not make a large enough footprint to warrant continuing server manufacturing. The servers manufactured by Intel utilized Chenbro chassis and offered NVMe server options before other companies offered complete servers using NVMe exclusively. Intel also introduced features like liquid cooling in its Xeon Platinum 9200 series server models, which were not commonplace in the server sector.

The PCSD systems that replaced the NVMe structured systems did not work well with other Intel server families licensed for companies like Microsoft and their Azure Stack, with products like the Data Center Blocks (DCB) and Data Center Systems (DCS).

Intel’s selling of the DCSG to MiTAC allows the company to utilize the money for components. Furthermore, the company is focusing on its Foundry Services, allowing them to focus on silicon-based technology and increase research on improving and minimizing the size of the process node on a silicon chip, such as the 18A technology.