By Max A. Cherney
(Reuters) – Intel will generate a “meaningful” amount of revenue from its contract chip manufacturing business starting in 2027, the company’s CFO told an investor conference on Wednesday.
Intel is currently in discussions with 12 potential customers that will generate some revenue in 2026 and additional cash in 2027, according to CFO David Zinsner. The company has decided not to commercialize its 20A manufacturing process and will focus on its more advanced 18A manufacturing process, the CFO said.
The foundry currently generates revenue from its advanced packaging operations, Zinsner said.
Zinsner did not directly respond to a Reuters report on Wednesday about Intel’s failure to produce viable test wafers for Broadcom, a potential manufacturing customer.
The Santa Clara, California-based company is embarking on a turnaround plan that includes divesting a number of businesses and cutting its workforce by 15%. CEO Pat Gelsinger and other key executives are expected to present their plans to the company’s board of directors at a meeting in mid-September, Reuters reported Sunday.
The company’s cuts will be largely complete by the time Intel reports earnings for the current quarter, Zinsner said. The company is considering a wide range of options as it weighs what to cut and what to keep.
The company “probably won’t see any money until later this year” from the U.S. CHIPS Act, Zinsner said. The law provides billions in subsidies and other incentives to boost chip production in the United States.
(Max Cherney in San Francisco; Editing by Chris Reese and Mark Porter)
