Intel won't spin-off flash memory business

"What we are thinking about is simply allowing the memory factory team to work much more tightly aligned with the design team," he elaborated.

Otellini is engaged in a review of Intel's operations, especially after last week its world crumbled when favourite customer Dell became so alarmed while gazing at its own bottom line it decided to allow a few AMD Opteron chips onto its virtual pages.

Intel's flash memory operation is believed to have lost more than $450 million over the last three years.