Intel co-CEOs say they remain invested in Foundry, not writing off separation

Intel (NASDAQ:INTC) co-CEOs Michelle Johnston Holthaus and David Zinsner didn’t hold back when saying their company has a lot of work to do in improving products and earning customer trust, during a presentation at Barclays 22nd Annual Global Technology Conference on Thursday.

They also discussed the future of Intel Foundry and of utilizing manufacturing partners, such as Taiwan Semiconductor (NYSE:TSM).

“When we are thinking about Intel products, we are thinking about who is the right manufacturing partner for us,” Holthaus said. “Your products have to hit the windows at the right time. At times picking TSMC is right, and at other times it makes sense to use the Intel Foundry. We are using Intel Foundry for Panther Lake right now, but TSMC has been a fantastic partner. They are the benchmark for the industry.”

She said 18A remains a primary step in Intel regaining product leadership, and they already have eight customers using Panther Lake.

“We are going down the path to creating Intel Foundry as a subsidiary,” Zinsner said. “That’s already in place, and it’s going to happen. Does it ever fully separate? That’s another question for another day.”

“We are more likely to tell you things after they are materializing rather than tell you what we are hoping to achieve in the future,” he added. “This is why the board chose us to lead.”

Regarding Mobileye (MBLY), Zinsner said they want Intel to hold a “reasonable stake” in the company, but they are open to unloading some shares to drive cash flow. And for Altera, Intel is searching for a financial partner to eventually help take the company public.

He also said Intel is done, at the moment, with significant employee layoffs. The company has laid off approximately 15,000 employees this year.

“However, we will still be constantly scrutinizing where we are getting the most return,” Zinsner said. “I think there are some ways to simplify and focus what we are doing.”

Holthaus highlighted the fact that Intel has some work to do regarding data centers and in securing a stronger role in artificial intelligence.

“We’ve had some issues in the data center side,” she said. “2025 is a year of stabilization and regaining our market share. We have as much work to do on the products side as we do on the customer side.”

“AI has also come in, and the shift from CPU to GPU has really caused me to stop, reflect and listen,” she said. “We have a lot of work to do on the AI side. My first couple of weeks have been just about listening. What pivots do we have to make?”

“Up until now, AMD (AMD) has been doing a better job than us,” Holthaus added. “It requires great engineering and great strategy. I don’t think we were making enough investments in innovation. It’s worth it to me to have a year fall short to catch up.”

Intel (INTC) also announced during the event that Holthaus’ role as Product CEO is permanent.

Intel (INTC) shares were up nearly 3% by early Thursday afternoon trading.