Intel Exits Bitcoin Mining Chips To Cut Costs, Prioritizes Outsourcing To Customers

Key Points:

• Intel is discontinuing its Blockscale Bitcoin mining chips to prioritize manufacturing certain chips for outside customers, cutting overall costs.
• The semiconductor chip manufacturing company will stop taking orders for Blockscale 1000 Series ASICs by October 20 and end shipping roughly in April 2024.
• The move comes as Intel prioritizes its investments in IDM 2.0, a strategy to outsource its chip making to outside customers while it continues to ramp up its own production of smaller and faster chips.

Intel has announced that it will discontinue its Blockscale Bitcoin mining chips to prioritize manufacturing certain chips for outside customers, cutting overall costs.

According to a Reuters report, the semiconductor chip manufacturing company will stop taking orders for Blockscale 1000 Series ASICs by October 20 and end shipping roughly in April 2024. The move comes as Intel prioritizes its investments in IDM 2.0, a strategy to outsource its chip making to outside customers while it continues to ramp up its production of smaller and faster chips.

Intel launched the Blockscale mining chips in April 2022, with each chip capable of up to 580 gigahash per second and being combined into a single mining unit. The technology was integrated into the operations of Argo Blockchain, Block, Hive Blockchain Technologies, and GRIID Infrastructure, who were the first companies to utilize the chips.

Intel’s decision to discontinue the Blockscale mining chips follows a rout in the cryptocurrency market, which hurt some chip companies, including Nvidia Corp, whose high-end graphics chips became popular for crypto mining.

According to a report by the Wall Street Journal, Intel CEO Pat Gelsinger took a 25% pay cut in February as part of the company’s cost-cutting initiatives. The company aims to achieve annual cost reductions of up to $10 billion by 2026 through efficiency gains. Despite discontinuing its Blockscale Bitcoin mining chips, Intel stated that it will continue monitoring “market opportunities” in cryptocurrency.

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