Intel's Interim CEOs Implies Chip Foundry Sale Is Possible

At the Barclays investment banking conference, Intel's interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, made the latest comments on the fate of the chip foundry division.

The two executives admitted that if the new chip manufacturing technology, 18A, which is set to be launched next year, does not achieve the expected success, Intel may be forced to sell its chip foundry division. Following these comments, Intel's stock price rose by 3.28% on Thursday.

This year, the company's market value has shrunk by more than $100 billion, largely related to its continuously losing chip foundry division. In addition, the company has missed out on the biggest driver of the tech industry - artificial intelligence, which has disappointed investors.

Nevertheless, Intel has been hesitant to spin off its chip foundry division and has pinned its hopes on the 18A technology to compete with TSMC and Samsung's 2-nanometer chip processes. Intel hopes to use 18A to bring the manufacturing of its flagship personal computer chips back in-house, a project that is currently being outsourced to TSMC.

Holthaus stated that she personally believes the idea of completely separating chip design, manufacturing, and Intel products is impractical, but this is not her decision to make.

Zinsner, who also serves as Intel's CFO, outlined the idea of separating the financial and operational aspects of the chip foundry division into a standalone subsidiary, saying that the division already operates separately from Intel's other businesses and is in the process of establishing an independent operations committee and business process software system.

Zinsner did not rule out the possibility of completely spinning off the chip foundry division but emphasized that this is not a decision that can be made immediately. He previously insisted that Intel's core revival strategy will remain unchanged, with the company still aiming to be a leading CPU supplier and chip foundry.

Once Intel's foundry becomes a completely independent division, Intel could list it while retaining control. However, the market is highly skeptical about the significance of spinning off a foundry that does not produce products leading the market.

Intel plans to share updates on 18A at its earnings conference at the end of January, providing a more detailed picture of the chip manufacturing technology landscape. However, judging from the current attitudes of Holthaus and Zinsner, neither seems to have much confidence, which may imply that Intel's prospects remain uncertain.