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,

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

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.