Intel’s new co-CEOs are considering splitting the company and divesting its manufacturing division. But billions in subsidies from the USA don’t make this a given.

Intel’s new co-CEOs suggest a split in the company is possible. This particularly concerns Intel’s division of chip design in one company and manufacturing in another. The accounting and operational aspects of Intel Foundry have already been spun off today.

Intel is an exception in the industry. The company develops and produces advanced microchips. For most companies, such activities are separate. For example, Nvidia and AMD design chips, but TSMC makes them. In contrast, TSMC has the most advanced manufacturing lines in the world, but does not build its own designs.

Chip design is a very complex and expensive task, as is the further development of the manufacturing nodes. The division of these activities is therefore not illogical. GlobalFoundries was founded in 2008 as a spin-off of AMD’s manufacturing division.

Don’t just sell

However, the story is not that simple for Intel. Former boss Pat Gelsinger secured 7.9 billion US subsidies for chip manufacturing shortly before his surprising departure at the beginning of September. These subsidies are subject to conditions: for example, a simple spin-off and sale of Intel Foundry is not permitted.

Intel can separate the foundry branch as long as it retains the majority. The interim co-CEOs do not rule out such an approach.