Intel's Chipmaking Future: A Crucial Test Looms

Intel's new co-CEOs may sell its manufacturing operations if upcoming 18A chip technology fails. The firm, unique in both designing and manufacturing chips, seeks to reclaim its lead amid competition from Nvidia and Taiwan Semiconductor Manufacturing. Intel Foundry operations are being separately managed as a potential standalone unit.

Intel's leadership hinted at a possible sale of its manufacturing operations amid uncertainties surrounding a new chip technology, 18A, slated for next year. As co-CEOs Michelle Johnston Holthaus and David Zinsner took the helm following Pat Gelsinger's ouster, they face the challenge of revitalizing the company's manufacturing edge against competitors like Nvidia.

During a Barclays conference in San Francisco, Holthaus discussed Intel's unique dual role in chip design and manufacturing, noting the potential need to separate these functions if the new technology does not deliver results. Intel aims to bring its flagship PC chip manufacturing back in-house, a move crucial for regaining momentum in the chip industry.

Chief Financial Officer Zinsner highlighted the separation of Intel Foundry, its manufacturing division, into a standalone subsidiary. While its finances and operations are already distinct, a complete separation remains uncertain. Intel's shares climbed 2.3% after the executives' remarks, reflecting cautious optimism.

(With inputs from agencies.)