AsianFin - Intel's Chief Financial Officer David Zinsner announced during an investor meeting on Wednesday that the company expects its contract chip manufacturing business to generate "significant" revenue by 2027. Intel is currently in negotiations with 12 potential clients for foundry contracts, with some revenue anticipated to start coming in by 2026 and fully contributing by 2027.

Zinsner also revealed that Intel has decided to prioritize the development of its advanced 18A manufacturing process, opting not to promote the earlier 20A process. The company’s current foundry revenue primarily stems from its advanced packaging services.

In addition to expanding its foundry operations, Intel is executing a turnaround plan aimed at returning to profitability. This plan includes divesting certain business units and laying off 15% of its workforce. Zinsner mentioned that these layoffs are expected to be largely completed by the time Intel reports its current-quarter earnings.

Despite the progress, Intel is "unlikely" to receive funding from the CHIPS Act before the end of this year, Zinsner added.