Intel (INTC.US) executives admit or are forced to sell chip manufacturing business

Intel's (INTC.US) two top executives on Thursday acknowledged that the company may be forced to sell its chip manufacturing business if a new chip manufacturing technology due next year fails.

David Zinsner and Michelle Johnston Holthaus, Intel's interim co-CEOs, were asked at a Barclays investment conference in San Francisco on Thursday whether Intel's continued integration of manufacturing and design was tied to the success of its new chip manufacturing technology, called 18A, due next year.

Michelle Johnston Holthaus, speaking about the company's product and manufacturing businesses, said: "From a practical standpoint, I think it's reasonable to think about them being completely separate and not connected? I don't think so. But someone will decide that."

David Zinsner, also the company's CFO, outlined how Intel would separate the financial and operational aspects of the manufacturing business into a separate subsidiary. He said Intel's manufacturing business has already been operating separately from the rest of Intel's businesses and is building its own operating committee and business process software systems. "Will it be completely separate? That's another open question," he said.