Intel said it's turning its foundry business into an independent unit with its own board and the potential to raise outside capital.

Intel announced it'll pause its chip-making plans in Poland and Germany -- and expand a deal with AWS to build custom chips, including an AI processor.

Intel’s partnership with AWS is part of the chipmaker’s attempt to play catch-up. The new deal, along with a $3 billion grant from the US government to boost domestic chip making and make chips for the US military, “demonstrates the continued progress we are making to build a world-class foundry business,” Intel said in the statement.