diff --git a/soc/xtensa/intel_s1000/CMakeLists.txt b/soc/xtensa/intel_s1000/CMakeLists.txt
index 6d64c0e7b56..ae8aa2050e4 100644
--- a/soc/xtensa/intel_s1000/CMakeLists.txt
+++ b/soc/xtensa/intel_s1000/CMakeLists.txt
@@ -5,7 +5,5 @@ zephyr_library_include_directories(${ZEPHYR_BASE}/drivers)
 zephyr_library_sources(soc.c)
 
 if("${ZEPHYR_TOOLCHAIN_VARIANT}" STREQUAL "xcc")
-if(CONFIG_NEWLIB_LIBC)
-  zephyr_library_sources(xcc_newlib_fix.c)
-endif()
+add_subdirectory(xcc)
 endif()
diff --git a/soc/xtensa/intel_s1000/xcc/CMakeLists.txt b/soc/xtensa/intel_s1000/xcc/CMakeLists.txt
new file mode 100644
index 00000000000..7525c28a8f0
--- /dev/null
+++ b/soc/xtensa/intel_s1000/xcc/CMakeLists.txt
@@ -0,0 +1,3 @@
+# SPDX-License-Identifier: Apache-2.0
+
+zephyr_library_sources_ifdef(CONFIG_NEWLIB_LIBC newlib_fixes.c)
diff --git a/soc/xtensa/intel_s1000/xcc_newlib_fix.c b/soc/xtensa/intel_s1000/xcc/newlib_fixes.c
similarity index 100%
rename from soc/xtensa/intel_s1000/xcc_newlib_fix.c
rename to soc/xtensa/intel_s1000/xcc/newlib_fixes.c