Intel is scrapping its automotive business in the latest installment of the chip giant’s restructuring push.

According to an internal company memo cited by The Oregonian, the closure of Intel Automotive will see most of the department’s employees laid off. A relatively small business in the Intel family, it is not known how many staff members will lose their jobs.

In a written statement provided to The Oregonian, Intel commented: “As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers.

"As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.”

Any existing customers may be expecting the AI-enhanced system-on-a-chip ACU U310, which was unveiled in January. The company also worked on graphics cards designed to power car infotainment displays.

In all, the company’s play to enter the software-defined vehicle market ultimately came to little more than the sample stage.

What's next for Intel's automotive aspirations?

Intel remains in software-defined automotives with its investment in Mobileye, which develops computer vision for autonomous driving technology. Originally part of Intel, the company was spun out as a stand-alone for public trade in 2022.

Alongside Mobileye, Intel has made numerous attempts to define automotive, with various ventures via in-car computing platforms and in-vehicle infotainment (IVI) systems.

Intel Automotive likely represents the last stand for the company’s aspirations in this market, as new CEO Lip-Bu Tan continues his bold restructuring push. In a bid to bring Intel Foundry back to its heyday, the company is making numerous layoffs, with cut backs already underway in its manufacturing, design and dev, and marketing divisions.

The company may not be so happy to learn that rival Nvidia hit an all-time high in shares yesterday on Wall Street. But those leaving the Intel Automotive unit may have some good news on the horizon, as automotive parts maker Continental is launching a fabless semiconductor business unit for chips as the automobile sector demands more semiconductors to power software-defined vehicles.