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Intel’s interim co-CEOs have admitted that selling Intel’s manufacturing business to improve its financial position is not on the table, according to multiple reports.
Interim CEO David Zinsner, who is also Intel’s Chief Financial Officer, said at the Barclays tech conference in San Francisco that Intel’s manufacturing business is already being separated from the rest of the company. Currently, it is not known whether the 7.9 billion dollars from the US federal government will keep its original business tied to the company.
Zinsner suggested some kind of separation “will happen,” but whether Intel will actually separate its manufacturing division and sell it or get rid of it entirely is “an open question for another day.” One of Intel’s interim co-CEOs, Michelle Johnston Holthaus, shared a similar stance, saying that “someone else will decide” whether Intel separates its chip manufacturing division.
This decision-maker is likely to be Intel’s next CEO, who has not yet been appointed at the time of writing. Intel’s stock rose 2.3% after the announcement, according to Reuters, but Intel stock is still down 53% over the past year.
Intel’s former CEO Pat Gelsinger stepped down from his post on December 2 after nearly four years on the job. One board member said in a statement at the time that Intel’s board has “a lot of work to do for the company” and is “committed to restoring investor confidence.”
About a week ago, Zinsner said that Intel’s next CEO will have expertise in chip manufacturing. The US company is reportedly considering former Intel board member for the CEO job, along with Marvell Technology CEO Matt Murphy.
In July, Intel faced problems with its 13th- and 14th-generation desktop chips. Chips can be destroyed due to a bug, causing permanent damage. Intel extended the warranty on these chips in response.
Intel, unlike competitors AMD and Nvidia, designs and manufactures most of its own chips. Taiwan Semiconductor Manufacturing Corp (TSMC) makes chips for Nvidia, Apple, and AMD. The Taiwanese company is also opening US factories in Arizona, with one to start in 2025 and two more to start production by 2030. TSMC founder Morris Chang said on Monday that Intel should have focused on AI (like Nvidia has) in the chip manufacturing business, adding that he did not know why Gelsinger left job.
Even if Intel decides to keep its manufacturing business, it will have to compete with TSMC as well as Samsung and Micron, which are also investing in stateside chip-building and receiving billions in funding from the federal government.