Intel is closing its automotive chipmaking business

Intel is shutting down its business dedicated to making processors for cars. In a memo seen by The Oregonian, Intel tells workers that it plans to lay off “most” employees in the division, citing plans to shift focus to its “core client and data center portfolio.”

“As part of this work, we have decided to wind down the automotive business within our client computing group,” Intel writes in the memo. “We are committed to ensuring a smooth transition for our customers.” Intel didn’t immediately respond to The Verge’s request for comment.

Over the years, Intel has invested heavily in its automotive business, which builds chips that power a car’s infotainment system, instrument clusters, and other controls. Intel’s technology runs in more than 50 million vehicles, and up until now, it seemed set on expanding its reach. Last year, it announced new AI-enhanced chips for cars that will help improve a vehicle’s navigation system and voice assistant. It revealed plans to bring its Arc GPU to cars as well.

Intel’s newly appointed CEO, Lip-Bu Tan, said in April that the company would need to “reduce the size” of its workforce in the second quarter of 2025 as part of plans to get the chipmaker back on track. The company also informed employees of layoffs coming to its foundry business as well, according to The Oregonian, and a recent WARN (Worker Adjustment and Retraining Notification) notice in California suggests layoffs impacting 107 employees at its Santa Clara headquarters.