Intel's co-CEOs have shed light on the company’s plans to separate its manufacturing and product divisions. This shift could significantly alter the company’s future. The remarks come after former CEO Patrick Gelsinger’s departure earlier this month.

Intel is unique in the x86 chip industry as it both designs and manufactures its chips. However, with a slowdown in the PC market and challenges in manufacturing, Intel is under pressure to regain leadership in process technology. The 18A manufacturing process, due next year, is critical for this effort.

During a Barclays conference, the co-CEOs discussed the current state of Intel’s manufacturing and product divisions. Holthaus explained that while the two businesses are independent, there is no immediate need for complete separation. Both divisions make their own decisions, but their collaboration ensures Intel products are made using the best available technology.

Despite Holthaus’s comments, she stated that Intel's focus is on regaining process leadership, especially with the upcoming 18A process. However, she did not directly address whether a complete split would happen in the future, leaving room for further discussion.

David Zinser, the other co-CEO, provided further details on Intel’s efforts to separate the two divisions. Intel is in the process of creating a subsidiary for its foundry business. This includes setting up a separate operational board and an independent ERP system. However, Zinser emphasized that whether the two businesses will fully separate is still an open question.

Following the executives' comments, Intel's stock price rose by over 2%. Investors are eager for Intel to reduce operating costs and streamline its operations. A potential separation would bring Intel closer to the business models of NVIDIA and AMD, which don’t manage manufacturing.

In 2008, AMD spun off its manufacturing division to create GlobalFoundries, allowing AMD to focus solely on chip design. Manufacturing is a capital-intensive business, and separating it may allow Intel to allocate resources more efficiently.

Intel’s future strategy will be closely watched by industry experts and investors. The company’s ability to successfully navigate these changes will be crucial to its position in the competitive semiconductor market.

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