Intel stands at a crossroads, with its interim leadership signaling potential major structural changes in the coming year. During a Barclays technology conference in San Francisco, interim CFO Dave Zinsner explicitly stated that the possibility of separating the company’s manufacturing and product-development divisions remains “an open question for another day.”
The American chipmaker’s leadership, now co-led by Michelle Johnston Holthaus, acknowledged the company’s significant challenges. Intel has struggled to keep pace with competitors, undergone restructuring, laid off a majority of its employees earlier this year, and fired its longtime employee and CEO, Pat Gelsinger.
Zinsner and Johnston Holthaus diverged from former CEO Pat Gelsinger’s approach, who had consistently argued for maintaining the company’s integrated structure. “Pragmatically, do I think it makes sense that they’re completely separated and there’s no ties? I don’t think so,” Johnston Holthaus said, while leaving room for future strategic shifts.
The potential breakup comes amid broader performance issues. Johnston Holthaus candidly admitted that rivals like Advanced Micro Devices have outperformed Intel in delivering desired data center products. The company also faces significant challenges in artificial intelligence chip development, with Johnston Holthaus acknowledging that their Gaudi chip is “difficult to use.”
Moving forward, Intel’s strategy focuses on investment and long-term competitiveness. Johnston Holthaus emphasized the company’s willingness to endure near-term financial challenges to develop more competitive product offerings.