Intel says that it plans to spin off its corporate venture arm, Intel Capital, into a standalone fund, with Intel as an "anchor investor."

Intel Capital has $5 billion in assets and a portfolio of 170 companies. Intel says it will remain an "anchor investor."

Intel will spin off its venture capital unit as the troubled US chipmaker seeks to cut costs and faces more scrutiny over its investments in China. Intel said on Tuesday it would separate Intel Capital,

The chip maker said it will remain an investor in Intel Capital, founded in 1991 with over $5 billion in assets under management.

Intel, which will remain an anchor investor, said the standalone operations are expected to begin in the second half of 2025 and will have a new name. The existing Intel Capital team will move to the new company.