Intel to Increase Revenue from Contract Chip Manufacturing by 2027, CFO Says
In a recent investor conference, Intel's CFO revealed plans to see a significant boost in revenue from its contract chip manufacturing business by 2027. The company is currently in talks with 12 potential customers, with revenue expected as early as 2026 and further growth in 2027. Intel has made the strategic decision to focus on its more advanced 18A manufacturing process over the 20A process. The foundry business is already generating revenue from its advanced packaging segment.
Despite recent reports of challenges with test wafers for Broadcom, Intel remains committed to its turnaround plan, which includes significant staff cuts and streamlining of operations. CEO Pat Gelsinger and other key executives are set to present their plans to the board in mid-September.
Intel is also awaiting funds from the U.S. CHIPS Act, which aims to boost chip manufacturing in the country. The company expects to see the impact of these funds by the end of the year.
Analysis:
Intel's focus on contract chip manufacturing and advanced processes bodes well for its future revenue growth. The company's strategic decisions and turnaround plan indicate a commitment to staying competitive in the market. Investors should keep an eye on Intel's progress in securing new customers and implementing cost-cutting measures. Additionally, the impact of the U.S. CHIPS Act on Intel's bottom line could be a significant factor to watch in the coming months.
