COLUMBUS, Ohio (WCMH) — CEO of Intel Products Michelle Johnston Holthaus said Tuesday she is considering manufacturers outside of Intel Foundry, the not-yet-profitable division responsible for Ohio’s major Intel plant, when creating Intel’s products.
“Obviously, I’m very happy with the Foundry and how far they’ve come along,” Holthaus said. “But one thing that I constantly have a conversation about internally is that sometimes an Intel Foundry is going to make sense for my products and sometimes it will not.”
Intel has two primary internal divisions, Intel Products and Intel Foundry. Intel Foundry manages the manufacturing side of Intel, including Ohio’s $28 billion plant, which is currently under construction. Intel Products manages processers, server products and other goods the company sells. Intel Products are often made through Intel Foundry, although both also accept outside business.
For example, Holthaus said, one new product is being manufactured through both Intel Foundry and Taiwanese semiconductor leader TSMC. She said she prioritizes making the best product over working internally, and using multiple foundries allows her to optimize products because different foundries excel in different ways. She said right now, Foundry collaboration is around 70% Intel and 30% external.
In theory, this generates less business for Intel semiconductor plants like the one being built in New Albany. However, selling more products drives profits for Intel, which could be used to support projects like Intel Ohio One.
Holthaus also said Intel Foundry will need to find another major customer outside of Products to prove its profitability and justify expenses like Ohio’s construction. However, she said she thinks the Foundry is well-positioned and she is confident in where it will end up.
Intel has undergone a number of changes this year, which Holthaus was hopeful about. Holthaus said new CEO Lip-Bu Tan is very transparent about his many conversations with customers and lets employees know what is and isn’t working. She said part of these conversations is connecting with Intel Foundry possible customers who decided against working with Intel Foundry to understand where the concerns and hesitations are.
“I think employees are very optimistic about how he (Tan) can help us,” Holthaus said.
Holthaus said despite encouraging moves, there is a lot of uncertainty right now in the market, especially because of tariffs. Starting Wednesday, Trump announced increased tariffs on steel and aluminum, and Holthaus said Intel and others in the market are cautiously waiting to see how else tariffs will affect the semiconductor industry.
Holthaus said if need be, they can shift operations around globally and allow them to pivot. She said the company is prioritizing what customers want above all, and are optimistic that enough of their scenarios will be able to be implemented that they can adjust appropriately.
“We have a whole team that’s doing a variety of scenario planning,” Holthaus said. “I don’t think in any one scenario planning they picked all the right lotto numbers, but ”
Holthaus did not address Intel’s incoming layoffs, which Bloomberg reported could hit at least 20% of workers. Although an exact number is not yet confirmed, Tan has announced large layoffs will occur by the end of July. See previous coverage of these layoffs in the video player above.
Holthaus was co-interim CEO of Intel before it selected Tan to head the company in March, and she appeared less convinced then her co-CEO of Intel Foundry’s place. As head of Products, she described herself as Foundry’s largest wager customer. She said she was confident the Foundry will succeed, but it will need to prove itself.
“As CEO of Intel Products, I will always make process technology decisions based on what is best for my customers,” Holthaus said in January. “And Intel Foundry will need to earn my business every day, just as I need to earn the business of my customers.”