Intel’s financial manager announced that the company’s contract chip manufacturing business will achieve significant income from 2027.
According to Reuters, Intel is in talks with 12 potential customers who will provide the company with high liquidity in 2026 and 2027. According to David Zinser, CFO of Team Blue, the company has decided to focus on the more advanced 18A lithography instead of marketing the 20A (2nm class) manufacturing process.
Zinser said the chip maker Intel is already making money from its advanced packaging business.
Intel Foundry (Intel’s contract chipmaking business) recently failed to satisfy Broadcom. About a month ago, Broadcom examined Intel’s custom 300mm wafers produced using the 18A process and concluded that Intel’s fledgling technology was not yet suitable for mass production of the chips.
In the wake of financial problems and the decline in the value of Intel’s stock in the past few months, the company’s board of directors decided to close some businesses and programs and lay off about 15% of employees.
Zinsser said that Intel’s financial crisis will end after the announcement of the current quarter’s earnings. He believes that most likely, no money will be injected into the company through the US CHIPS Act until the end of 2024.
