May 26, 2006 – Intel Corp. has no plans to spin off its memory chip business as a public entity, despite much speculation from industry watchers and Wall Street, according to comments made by an Intel exec.
“We are not currently thinking about those kind of things,” said Intel CEO Paul Otellini, quoted by Reuters and the Associated Press, while in Malaysia to open a new $40 million facility. “What we are thinking about is simply allowing the memory factory team to work much more tightly aligned with the design team.”
A few weeks ago, Otellini indicated the company was launching a wide-ranging review of all business units in an effort to squeeze out more efficiencies and profits, fueling speculation that it was mulling the future of its memory chip business, which has struggled.
Intel expects overall 2006 revenue to fall by about 3% to $37.7 billion, and has scaled back planned investments by about 8% to about $11 billion, roughly the same as last year.