Intel's interim CEOs, Michelle Johnston Holthaus and David Zinsner, have admitted that the company may be forced to sell its Foundry business if a new chip-making technology does not succeed.
The spin-off of Intel Foundry was put in doubt after the Biden administration awarded $7.86 billion in federal funding to advance Intel's manufacturing and semiconductor packaging projects.
The government subsidies would restrict Intel's ability to sell stakes in its chip-making unit if it became an independent entity.
The decision to separate Intel's manufacturing and product-design operations will be made by the chipmaker's next CEO.