Intel executives suggest the possibility of a spin-off in manufacturing.

The recent unexpected dismissal of former Intel CEO Pat Gelsinger has left the semiconductor company facing an uncertain future that could lead to a significant restructuring. At a Barclays conference dedicated to investment banking, Intel's interim co-CEOs suggested the possibility of dismantling the company's manufacturing arm. According to recent information, the finances and operations of Intel's manufacturing division are already being separated into an independent subsidiary.

David Zinsner, Intel's Chief Financial Officer, confirmed that this separation is an ongoing fact, although he did not specify whether it would result in a complete spin-off of the manufacturing division. "Will it be completely separated? That is an open question for another day," Zinsner remarked. Meanwhile, Michelle Johnston Holthaus, Intel's product CEO, expressed her views on the viability of a spin-off. While she believes that a total separation may not make sense, she made it clear that the final decision lies with others.

The option to split Intel will be crucial for the company's future and for the next CEO who takes the role. This year, Intel was forced to outsource the manufacturing of its Lunar Lake laptop chips to TSMC, resulting in a notable financial misstep. Furthermore, the separation of its factories will not be an easy task, as Intel benefits from nearly $8 billion in U.S. government funding through the CHIPS and Science Act, and the U.S. Department of Commerce oversees any changes in the company’s control.

If Intel ultimately decides to spin off its manufacturing division, it could position itself as a company focused on chip design, similar to its direct competitors. Meanwhile, attention is on Intel's "18A" process, which is expected to arrive next year. This launch is anticipated to be complicated, as the company will face challenges in surpassing TSMC and delivering a flagship chip that competes with AMD. Throughout the year, Intel has faced multiple setbacks, including financial errors related to Lunar Lake and issues with its 13th and 14th generation processors, as well as disappointing expectations regarding its upcoming desktop CPUs.