The two executives leading Intel this week acknowledged that the company may be forced to sell its manufacturing operations.
In the context of the mentioned reasoning, it was separately noted that the specified scenario will become a reality if the new technology of making chips slated for next year does not generate positive results. Probably, in this case, both indicators of a strictly technological nature and financial performance are meant.
It is worth noting that Intel develops and manufactures chips. The relevant activity structure is unique to the industry. Currently, standard practice implies that some companies specialize in developing chips, while others produce microcircuits. At the same time, Intel is in a difficult situation and is going through not the best period in its history. In the past, this company symbolically breathed the air of the peaks of success, and now it is trying to get out of the twilight zone of failures into the territory of the shining of prosperity. Intel’s market capitalization has fallen by more than $100 billion. The corresponding dynamic is largely because the company missed out on the so-called artificial intelligence boom, one of the main beneficiaries of which was Nvidia, the firm that this year reported an increase in its market value to over $3 trillion.
Against the background of Intel executives’ comments, the brand’s shares rose by about 2.3%.
At a Barclays investment banking conference in San Francisco on Thursday, 12 December, Michelle Johnston Holthaus and David Zinsner who were tapped as co-chief executive officers after the ouster of former Intel CEO Pat Gelsinger last week were asked if the company’s continued combination of manufacturing and design was tied to the success of a new chipmaking technology called 18A.
Michelle Johnston Holthaus stated that, in her opinion, from a pragmatic point of view, there is no point in separating the manufacturing and product units of Intel.
David Zinsner noted that the company is already separating the finances and operations of the manufacturing division into a standalone subsidiary.
As we have reported earlier, US Finalizes Chips Manufacturing Award for Intel.
