Intel no longer rules out spin-off of chip production
If the new 18A manufacturing technology is not successful, Intel could outsource its chip factories. Intel's interim CEOs have not denied this.
(Image: Dragon Images/Shutterstock.com)
Following the recent departure of former CEO Pat Gelsinger, the two current heads of chip manufacturer Intel have admitted that the company may have to outsource its chip production if the next stage of self-developed manufacturing technology is not sufficiently successful. The dual leadership of CFO David Zinsner and Michelle Johnston Holthaus, who are acting as interim CEOs, have at least not ruled this out.
Intel is the only company in the industry that both develops and produces its own computer chips. Competitor AMD outsourced its own chip production more than 15 years ago to Globalfoundries, which was founded in 2008 as a contract manufacturer. AMD initially still had shares in the company before Globalfoundries was completely transferred to Arab hands in 2012. Intel could now face a similar scenario.
Videos by heise
Until now, Intel has stuck to manufacturing its own chips itself. However, at the beginning of this month, the previous Intel CEO Pat Gelsinger was surprisingly forced into retirement after his strategy of positioning Intel as a contract manufacturer for other manufacturers failed to take off. At the same time, the company has recently had to cope with high losses: 16.6 billion losses were recorded in the books for the past quarter.
New dual leadership only for the transition
Chief Financial Officer David Zinsner and the head of Intel's Client Computing Group Michelle Johnston Holthaus are now to lead the company on an interim basis until a new boss is found. The US chip giant probably already has a few candidates for the top job, but the two interim CEOs are apparently not among them, as Intel's new CEO is to come from outside.
Empfohlener redaktioneller Inhalt
Mit Ihrer Zustimmung wird hier ein externes YouTube-Video (Google Ireland Limited) geladen.
Ich bin damit einverstanden, dass mir externe Inhalte angezeigt werden. Damit können personenbezogene Daten an Drittplattformen (Google Ireland Limited) übermittelt werden. Mehr dazu in unserer Datenschutzerklärung.
According to media reports, Intel's board of directors has discussed a number of options in recent months. One of them: splitting Intel into chip designer and contract manufacturer. Gelsinger did not agree with this. Now Michelle Johnston Holthaus and David Zinsner were asked at an investment banking conference in San Francisco whether the continuation of this combination of chip design and manufacturing under one roof is linked to the success of the new 18A chip manufacturing.
Interim CEOs keep a low profile on the foundry division
Johnston Holthaus' answer to this is open. "From a pragmatic point of view, do I think it makes sense for the two to be completely separate and for there to be no connection whatsoever? I don't think so. But someone will decide that," she said according to Reuters, indicating that this decision will be up to the next Intel CEO.
CFO Zinsner, on the other hand, points out that the chip contract manufacturing division called Intel Foundry is already operated separately from the other Intel divisions, including in terms of accounting. The Foundry division will also soon have a separate operating committee and its own software system for business processes. "Will it ever be completely separated? That's an open question for another day," Zinsner also leaves his answer open.
The 18A technology is an important step for Intel, as the previous 20A manufacturing technology was not brought into series production. Instead, Intel is relying on many TSMC chips for the current series of Core Ultra 200 desktop processors, codenamed "Arrow Lake", and is skipping 20A production. The successor 18A, on the other hand, should be in a better position. Intel already counts two big tech heavyweights among its customers for this production stage. After Microsoft, Amazon is Intel's second major 18A customer.
(fds)
