Intel’s newly appointed co-CEOs, Michelle Johnston Holthaus and David Zinsner, acknowledged on Thursday that the company might have to divest its manufacturing operations if a critical chipmaking technology, 18A, slated for release next year, fails to deliver. This revelation follows the ouster of former CEO Pat Gelsinger last week.
During a presentation at the Barclays investment banking conference in San Francisco, Holthaus and Zinsner faced questions about Intel’s unique integration of chip design and manufacturing. Intel has long maintained both functions internally, setting it apart in the industry. However, the company’s struggles to reclaim its lead in chipmaking and capitalize on the artificial intelligence boom—dominated by Nvidia—have contributed to a market value loss exceeding $100 billion.
Holthaus emphasized the practical synergy between Intel’s manufacturing and design divisions but noted the possibility of separation. “Do I think it makes sense that they’re completely separated and there’s no tie? I don’t think so. But someone will decide that,” she said.
Intel has pinned its hopes on the 18A technology, intending to use it to bring the manufacturing of its flagship PC chip back in-house. The company previously outsourced production of this key product to Taiwan Semiconductor Manufacturing Co.
Zinsner, who also serves as Intel’s CFO, detailed ongoing steps to create operational independence for Intel Foundry, the company’s manufacturing division. He described efforts to establish separate financial and operational structures, including a dedicated operational board and business process software. While these moves prepare the division for potential full separation, Zinsner indicated that the ultimate decision remains unresolved. “Does it ever fully separate? That’s an open question for another day,” he said.
The executives’ comments offered a rare glimpse into Intel’s internal deliberations about its future direction. Following the remarks, Intel’s shares rose by 2.3%, signaling investor interest in the company’s strategic decisions amid industry challenges.
