December 13, 2024 – At the recent Barclays 22nd Global Technology Conference, co-CEOs of Intel, Michelle Johnston Holthaus and David Zinsner, acknowledged that the company still has a considerable journey ahead in terms of product enhancement and restoring customer confidence.
During the conference, Holthaus stated, “When selecting Intel products, we prioritize which manufacturing partner best suits our needs. Timing is crucial for product launches. Sometimes, TSMC is the ideal choice, while in other instances, Intel’s foundry services are more suitable. Currently, we’re utilizing Intel’s foundry for the production of Panther Lake, but TSMC has always been an excellent partner and sets the benchmark in the industry.”
Zinsner revealed, “We’re moving forward with plans to spin off Intel’s foundry services as a separate subsidiary. This process has commenced and will continue. Whether it will ultimately be fully independent is still under discussion.”
He further added, “We prefer to share updates when there’s tangible progress, rather than merely talking about future aspirations. This pragmatic approach is why the board chose us to lead the company.”
According to Zinsner, Intel has recently completed a significant round of layoffs, reducing its workforce by approximately 15,000 employees this year. “However, we’ll continue to monitor areas where we can generate higher returns. I believe there’s still room for improvement in terms of simplifying our operations and focusing our efforts,” he said.
Holthaus emphasized that Intel still has considerable work to do in its data center business and artificial intelligence sphere. “We indeed face challenges in the data center sector. Our goal for 2025 is to stabilize and regain market share. We have plenty of tasks ahead of us in terms of product innovation and customer outreach,” she explained.
She also mentioned, “The evolution of artificial intelligence and the shift from CPU to GPU has prompted me to deeply reflect and listen to market feedback. We have a lot of ground to cover in AI. In my early weeks, I’ve been learning, listening, and considering the necessary adjustments. To date, AMD has performed better than us in this area, which demands strong engineering prowess and strategic vision. I believe we need to invest more in innovation. I’m willing to accept short-term losses to catch up and overtake the competition.”
Previously, TSMC founder Zhang Zhongmou stated that Intel should focus on artificial intelligence rather than attempting to transition into chip foundry services. While he was unaware of the specific reasons for Pat Gelsinger’s departure, he observed that Intel seemed to be facing the challenge of simultaneously seeking a new strategy and leadership.
