Intel Executives Say a Manufacturing Spinoff Is Possible

Intel's interim co-CEOs acknowledged that the company may be forced to sell its manufacturing operations if a new chipmaking technology slated for next year does not succeed. Reuters reports: Speaking at a Barclays investment banking conference in San Francisco on Thursday, Michelle Johnston Holthaus and David Zinsner - who were tapped as co-CEOs after the ouster of former CEO Pat Gelsinger last week - were asked if the company's continued combination of manufacturing and design was tied to the success of a new chipmaking technology called 18A due next year. Intel plans to use that technology to bring manufacturing of a flagship PC chip back in-house after being forced to outsource its biggest product to rival Taiwan Semiconductor Manufacturing. 'Pragmatically, do I think it makes sense that they're completely separated and there's no tie?' Holthaus said of the company's product and manufacturing divisions. 'I don't think so. But someone will decide that.'

Zinsner, also chief financial officer, outlined how Intel is already separating the finances and operations of this manufacturing division into a standalone subsidiary. Zinsner said Intel Foundry, as the division is known, is already run separately from Intel's other businesses and is setting up a separate operational board and business process software system. 'That's going to happen,' Zinsner said. 'Does it ever fully separate? That's an open question for another day.'

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