Intel (INTC.US) is planning to spin off its venture capital unit and rename it Intel Capital.

Once the market leader in chip manufacturing, Intel (INTC.US) is now struggling to revive its business and financial situation, planning to rename and transform its venture capital arm into an independent fund.

The chipmaker will continue to be the "anchor investor" of the new company, according to a statement on Tuesday. The unit currently known as Intel Capital has assets of over $5 billion.

Intel's venture capital arm is one of the most famous corporate investment tools in Silicon Valley history, having invested over $20 billion in companies over the past 30 years. Historically, the unit has focused on technologies it believes will help drive the PC and server industries, and most of its sales have come from those two industries. Intel Capital's investments include ASML (ASML.US), Red Hat Inc. and Veeva Systems Inc.

The move announced on Tuesday aims to give the unit more independence and allow it to raise funds from other sources.

Intel said in a statement: "Independent operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under its new name. The existing Intel investment team will transfer to the new company, and business operations will continue as normal throughout the transition."

Intel is struggling amid the loss of market share and the rapid changes in the chip industry led by Nvidia (NVDA.US). The company's decline has forced it to cut jobs and other expenses to save cash. The company's woes also led to the ouster of CEO Pat Gelsinger at the end of last year. The company is currently looking for a replacement.

Intel is also taking other actions to narrow its focus and free up capital. It is reportedly looking for investors for Altera, a subsidiary that produces programmable chips, which it acquired for about $17 billion in 2015.

Intel's other acquisition, Mobileye Global Inc. (MBLY.US), an autonomous technology company, went public in 2022. Although Intel retained most of the business, Mobileye is seen as a potential cash source for the chipmaker.