Intel keeps sale of Intel Foundry open

Intel has abandoned former CEO Pat Gelsinger’s insistence of having close ties between the company’s design and a manufacturing arm. Speaking at an investor event, interim co-CEO David Zilsner said that it’s an “open question” whether the foundry operations will ever be completely separated. The other co-CEO Michelle Johnston Holthaus added that it will be up to the next CEO to make a decision.

Currently, Intel Foundry is being spun out as a full subsidiary. Gelsinger’s ousting prompted speculation that the board wants to cut Foundry loose, especially since Intel started emphasizing the importance of delivering competitive products. However, under the terms of the US Chips Act funding, the company is obliged to retain a majority stake in its foundry subsidiary. The contract also stipulates that the wafer purchasing agreements with Intel Foundry must remain intact.