Intel's New Era: Will 18A Chipmaking Technology Save the Day?

Intel's co-CEOs suggest the potential sale of its manufacturing operations if a new chipmaking technology, 18A, fails. As the company battles to reclaim its manufacturing lead and capitalize on AI opportunities, the stakes are high. The restructuring of operations is underway, but separation remains uncertain.

Intel's newly appointed co-CEOs have hinted at the possibility of selling the company's manufacturing operations if an upcoming chipmaking technology doesn't deliver expected results. As Intel strives to regain its manufacturing edge, a lack of success could lead to significant structural changes.

Speaking at a prominent investment banking conference, Michelle Johnston Holthaus and David Zinsner elaborated on Intel's challenges. Last week, they assumed leadership roles following the removal of Pat Gelsinger. Intel's future may hinge on the 18A technology's success, which is crucial to reinstating the manufacturing of a key PC chip in-house.

Despite uncertainties, Intel's efforts to separate its manufacturing finances and operations into a subsidiary are advancing. While co-CEO Zinsner stated this spinoff will occur, whether it results in a complete division remains unresolved.

(With inputs from agencies.)