Trends
Intel CFO forecasts significant manufacturing revenue by 2027
Intel projects its contract chip manufacturing business will generate substantial revenue by 2027, with talks underway with 12 potential customers.
Headline
Intel projects its contract chip manufacturing business will generate substantial revenue by 2027, with talks underway with 12 potential customers.
Context
OUR TAKE Intel’s push to challenge TSMC and Samsung in the chip manufacturing space faces obstacles, including its failure to deliver viable test wafers for Broadcom. As competitors maintain their lead, Intel’s turnaround plan and focus on advanced technology will be critical in determining its future in the highly competitive foundry market. –Jasmine Zhang, BTW reporter Intel expects to generate significant revenue from its contract chip manufacturing business by 2027, CFO David Zinsner said at an investor conference.
Evidence
Pending intelligence enrichment.
Analysis
While talks with 12 potential customers are underway, Intel is focusing on its advanced 18A manufacturing process, shifting away from marketing its 20A process. Despite a Reuters report about challenges in producing test wafers for Broadcom, Intel remains focused on its turnaround plan, which includes shedding businesses and cutting 15% of its workforce. Zinsner also mentioned that Intel will likely receive funds from the U.S. CHIPS Act by the end of the year. Also read: IFA leaks reveal Lenovo and Intel’s bold moves in AI-powered PC hardware Also read: Intel rises as report of chipmaker exploring options cheers investors
Key Points
- Intel projects its contract chip manufacturing business will generate substantial revenue by 2027, with talks underway with 12 potential customers.
- The company is focusing on its 18A manufacturing process while continuing its turnaround plan, including workforce reductions and streamlining operations.
Actions
Pending intelligence enrichment.
