The two interim CEOs who lead Intel At this time after the departure of Pat Gelsinger they have recognized that the company may have to split up, and even sell its manufacturing division if the new chip manufacturing technology they plan to launch next year is not successful.
According to Tom’s Hardware, both Intel CEOs acknowledged this at a Barclays investment banking conference. Both Michelle Johnston Holthaus and David Zinsner were asked if keeping the company’s design and manufacturing divisions together depended on the success of this technology, which they have called 18A.
Intel plans to use it in the manufacturing, again in-house, of a high-end PC chip. This return to in-house manufacturing comes after being forced to outsource production to TSMC.
Holthaus commented, referring to Intel’s two divisions, that «Product makes its decisions, and Foundry makes its own. Having good products with a great process, and technology that we have first-hand access to, is differentiating. So, being pragmatic, do I think it makes sense that they are completely separate and there is no relationship? I don’t believe it. But someone will decide«.
Therefore, he is not in favor of creating two independent companies from what exists now, but points out that the decision is not in his hands, but in those of third parties. It may be up to the Board of Directors, or the future CEO they choose.
As for Zinsner, who is also the company’s CFO, he highlighted that Intel is already dividing the finances and operations of the manufacturing division so that they are in an independent subsidiary.
In addition, he commented that Intel Foundry is already operating independently from the rest of the company’s divisions. They are also implementing a separate operational board of directors as well as a business process software system.
Zinsner assures that this structure will be createdbut does not categorically state that Intel is going to definitively split, underlining “Is it going to be completely divided? It is an open question that will be answered at another time.«.
