Intel Explores Spin-Off of Manufacturing Division Amid Tech Hurdles

Image Credit: Communications Today

 

Intel’s interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, acknowledged Thursday that the company may need to consider selling its manufacturing operations if its upcoming chipmaking technology, 18A, doesn’t succeed. 

This technology is critical for Intel’s plan to bring the production of its flagship PC chip back in-house after outsourcing it to rival Taiwan Semiconductor Manufacturing. 

Intel, which is unique for both designing and manufacturing chips, has lost more than $100 billion in value amid struggles to regain its manufacturing lead and missing out on the AI boom, which has been dominated by Nvidia.

Holthaus and Zinsner spoke at the Barclays investment conference in San Francisco, where they addressed questions about whether the company’s integration of manufacturing and design was contingent on the success of the 18A technology.

Holthaus suggested that fully separating the two divisions didn’t seem practical but left the decision to others. Zinsner, who also serves as Intel’s CFO, pointed out that Intel has already started separating the financial and operational aspects of its manufacturing division, Intel Foundry, into a standalone unit with its own operational board and business processes. However, Zinsner noted that whether the two divisions will ever be fully separated remains an open question.

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.