In the wake of recent leadership changes, Intel Corp (NASDAQ:INTC) is considering the possibility of spinning off its manufacturing operations. The interim co-chief executives, Michelle Johnston Holthaus and David Zinsner, discussed the potential separation of the chipmaker's manufacturing division from its product-development operations.
During the Barclays (LON:BARC) technology conference in San Francisco, Holthaus mentioned that a complete separation of the product and manufacturing divisions might not be the best course of action, but it could be a decision for the future. Zinsner, also the company's Chief Financial Officer, highlighted that while the two units operate independently with distinct oversight and financials, the question of a formal split remains undecided.
This discussion comes at a time when Intel faces challenges in keeping up with competitors and has experienced a significant decline in its financial performance. Speculation about the company's future direction has intensified since Pat Gelsinger was removed as CEO last week. Gelsinger, during his tenure from 2021 until his departure, was an advocate for keeping the manufacturing and product-design units under one roof.
As the market reacts to these developments, Intel's stock saw a 1.9% increase to $20.50 in New York trading. This uptick provides a slight respite from the 60% drop the shares suffered up to Wednesday’s close. The decision on whether to proceed with the spinoff will be left to Intel's next permanent CEO.
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