After hanging on the ropes for much of August and September, Intel (INTC -3.26%) is suddenly having a banner week. The stock jumped yesterday after the company secured $3 billion

Intel Corp.’s plans to create an independent subsidiary for its foundry business was a much-needed move aimed at convincing potential customers that they can trust their chip designs with a competitor’s manufacturing arm.

Intel will spin off its chipmaking business and establish Intel Foundry which will stand as an independent subsidiary, as part of a turnaround strategy.

Intel's foundry business will become an independent subsidiary, allowing it to take funding from external sources directly.

Shares of Intel are surging before the opening bell after the chipmaker said its foundry business would make some custom artificial intelligence chips for Amazon Web Services as it attempts to reinvig

Key Takeaways Intel shares surged in extended trading Monday after CEO Pat Gelsinger offered an update on the company’s turnaround plans. Gelsinger said Intel has made progress in lowering costs through layoffs,

The company even lost Apple as a customer for its Macs after Apple experienced several years of frustration with Intel's chip quality and the pace of its development. Apple also saw an opportunity to improve its battery life and switched to using Taiwan Semiconductor Manufacturing (TSMC) as its manufacturing partner because TSMC could make smaller chips.

Intel will produce the specialized "AI fabric chip" for Amazon, using its 18A manufacturing process, which is the company’s most advanced chip manufacturing technology.

Intel stock (INTC) popped 6% early on Sept. 17 after the chip maker announced plans to separate its foundry business into an independent unit with its own board and the ability to raise outside capital.

Intel is spinning off its chipmaking business as part of its plans to reverse billions in losses and a tumbling stock price. In an announcement on Monday, Intel CEO Pat Gelsinger said the Intel Foundry will become an independent subsidiary with “clearer separation and independence” from Intel.