Intel Is Considering Separating Its Manufacturing Division Amid Leadership Changes

Following recent leadership changes, Intel (NASDAQ:INTC) Corp is considering the possibility of separating its manufacturing operations. Interim co-CEOs Michelle Johnston Holthaus and David Zinsner discussed the potential for the chipmaker’s manufacturing unit to be separated from its product development operations.

Speaking at the Barclays technology conference in San Francisco, Holthaus indicated 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, who also serves as the company’s Chief Financial Officer, emphasized that the two units operate independently, with separate oversight and finances, but stated that the issue of a formal separation has not yet been decided.

This discussion comes at a time when Intel is struggling to compete with its rivals and has experienced a significant decline in financial performance. Speculation about the company's future direction has intensified since Pat Gelsinger was removed from the CEO position last week. Gelsinger had been an advocate for keeping the manufacturing and product design units under a single umbrella during his tenure, which lasted until his departure in 2021.

As the market reacts to these developments, Intel's shares rose by 1.9% to $20.50 on the New York Stock Exchange. This increase provides slight relief following a 60% decline the shares experienced until Wednesday’s close. Any decision regarding the separation of the manufacturing division will be left to Intel’s next permanent CEO.