Intel, a US-based technology company, is set to discontinue its line of Blockscale Bitcoin mining chips in a bid to cut costs. The semiconductor chip manufacturer has announced that it will discontinue the acceptance of orders for the Blockscale 1000 Series ASICs by October 20th, and halt their shipment by April 2024, as per a report from Reuters on April 18th. The move is aimed at prioritizing the manufacturing of certain chips to external customers, thereby reducing overall costs. Intel launched the Blockscale mining chips in April 2022, with mining firms like Argo Blockchain, Block, Hive Blockchain Technologies, and GRIID Infrastructure among the first to integrate the technology into their operations.
According to reports, Pat Gelsinger, the CEO of Intel, took a 25% salary reduction in February, while the company expects to achieve cost savings of up to $10 billion annually by 2026 through cost-cutting measures and efficiency improvements. Although Intel has ceased production of mining chips, it has apparently indicated its intention to keep an eye on “market opportunities” in the cryptocurrency sector.