Intel Revenue Milestone: Intel CFO David Zinsner announced at an investor conference on Wednesday that the tech giant expects its contract chip manufacturing sector to begin generating “significant” revenue by 2027. Intel is currently in talks with 12 potential customers, and Zinsner forecasts some revenue from these commitments in 2026 and more substantial inflow in 2027. The company has chosen to shift its focus from the 20A manufacturing process to the more advanced 18A process. Currently, Intel’s foundry operations are contributing to revenue through its advanced packaging services.
Restructuring and strategic changes
The company is undergoing a major restructuring, including divesting several business units and implementing a 15 percent reduction in its workforce. Intel CEO Pat Gelsinger, along with other top executives, is scheduled to present new strategies to the company’s board of directors at a meeting scheduled for mid-September. The planned staff reductions are expected to be nearly finalized by the time Intel announces its earnings for the current quarter, according to Zinsner. The company is evaluating several strategies for potential business cuts and retentions. In addition, Zinsner stressed that Intel is unlikely to see financial benefits from the U.S. CHIPS Act until the end of the year. The act, which provides billions in grants and incentives, is aimed at boosting chip manufacturing in the United States.(With contributions from Reuters)
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