Intel Is Done With Cars, Last Chips in Production As We Speak

5 months ago - 30 June 2025, autoevolution

The fierce competition in the automotive space and the company's struggle to get rid of unprofitable units forced Intel to make a decision many people saw coming. Intel has decided to kill off its automotive strategy and shut down the division in charge of building processors for cars.

Many people might be surprised to learn that Intel is building processors for cars, but the company's statistics could make them feel like they've been living under a rock for the past years.

Intel says its processors are already available in 50 million cars on the road, with 18 "trusted partners" launching vehicles fitted with Intel chips.

The company makes processors for a wide array of technologies used in cars, including electric vehicles, infotainment units, and other advanced systems in new-generation models. Furthermore, Intel previously announced plans to build AI-powered chips whose purpose was to push navigation systems and the interaction with voice assistants to the next level. Intel was one of the companies ready to spend big dollars on an AI-fueled automotive hardware revolution.

However, the company has now decided to give up on its automotive dream and lay off most workers in this unit. The true reasons have never been disclosed, but it's not hard to figure out that Lip-Bu Tan, the company's new CEO, is looking into ways to get rid of the assets that are not bringing home the bacon.

Intel's strategy going forward is simple. The company will focus on the core client and data center portfolio, spending its dollars on those parts of its business that can still generate revenue. Its automotive goodbye will happen gradually, with the company claiming it's fully committed to a smooth transition that won't put its customers in trouble.

Intel was once fully committed to becoming a bigger player in the automotive business. Its chips were supposed to power not only advanced systems in traditional cars but also fuel the transition to self-driving technology. Intel purchased Mobileye in 2017 for $15 billion, and the company will continue to exist after this departure from the automotive space.

Last year, Intel announced plans to bring the Arc GPU behind the wheel. The company used an event in China to reveal that it is developing a so-called new-generation cockpit user interface powered by its GPUs to offer advanced capabilities, such as gaming support with AAA titles. The project never came to fruition, and following this internal announcement, the expansion of the Arc GPU in the automotive space is dead.

The decision to give up on the automotive expansion isn't necessarily surprising. The company's CEO embarked on an aggressive downsizing program whose main objective was to deal with falling sales. Lip-Bu Tan previously explained that the company's short-term downsizing strategy would include layoffs, though the CEO never revealed that the automotive group would be removed.