Intel (INTC) stock surged by 6% on September 17 after the company announced plans to spin off its foundry business into a separate independent unit with its own board of directors and the ability to raise external capital. By the end of the trading day, Intel shares closed up 2.7%.

The company also announced receiving a new grant and signing a deal with a leader in the technology sector.

Earlier this year, Intel separated the financial reporting for its foundry business. “Creating a subsidiary structure will unlock significant benefits. It provides our external foundry customers and suppliers with clear separation and independence from the rest of Intel,” said Intel’s CEO Pat Gelsinger on September 16.

The leadership of Intel Foundry will remain unchanged and will continue to report to Gelsinger.

The company also announced a partnership with Amazon Web Services (AWS) for co-investments in custom chip designs for AWS, showing growing interest in Intel Foundry’s offerings.