Intel to Generate Revenue from Contract Chip Manufacturing by 2027

By Max A. Cherney

(Reuters) – Intel (NASDAQ:INTC) will begin to generate a meaningful amount of revenue from its contract chip manufacturing business in 2027, according to comments made by the company’s CFO at an investor conference on Wednesday.

Intel is currently in talks with 12 potential customers, as finance chief David Zinsner mentioned, which will generate some revenue in 2026 and additional income in 2027. The company has opted not to market its 20A manufacturing process and is focusing on the more advanced 18A manufacturing process, Zinsner added.

Currently, the foundry business gains revenue from its advanced packaging operations, Zinsner noted.

Zinsner did not directly address a Reuters report claiming Intel has failed to produce viable test wafers for Broadcom (NASDAQ:AVGO), a potential manufacturing customer.

Based in Santa Clara, California, Intel is undergoing a turnaround plan that includes shedding several businesses and a 15% cut to its staff. CEO Pat Gelsinger and other key executives are expected to present plans to the company’s board at a meeting in mid-September, as reported by Reuters on Sunday.

The company aims to complete cuts before announcing the current quarter’s earnings, Zinsner stated. Intel is evaluating a broad range of options regarding what to retain or eliminate.

Zinsner indicated that the company is “not likely to see money” from the U.S. CHIPS Act until late this year, despite the act allocating billions in grants and incentives to enhance chip manufacturing in the United States.

(Max Cherney in San Francisco; Editing by Chris Reese and Mark Porter)