Manufacturing company Intel will post “significant” revenue in 2027, CFO says.

By Max A. Cherney

(Reuters) – Intel (NASDAQ: ) will start generating a “significant” amount of revenue from its contract chip manufacturing business in 2027, the company’s chief financial officer said on a conference call with investors on Wednesday.

Intel is currently in talks with 12 potential customers that CFO David Zinsner said will generate some revenue in 2026 and additional cash in 2027. The company has decided not to commercialize its 20A manufacturing process in favor of focusing on the 18A manufacturing process more advanced. said the CFO.

The foundry business currently generates revenue from its advanced packaging business, Zinsner said.

Zinsner did not directly address a Reuters report on Wednesday that Intel had failed to produce viable test wafers for Broadcom (NASDAQ: ), a potential manufacturing customer.

The Santa Clara, Calif.-based company is in the middle of a turnaround plan that includes the elimination of a number of businesses and a 15 percent reduction in its workforce. CEO Pat Gelsinger and other key executives are expected to present plans to the company’s board at a meeting in mid-September, Reuters reported on Sunday.

The company’s cuts will be mostly completed by the time Intel reports its current quarter earnings, Zinsner said. The company considers a wide range of options as it considers what to cut or keep.

The company “probably won’t see any money” until the end of the year from the US CHIPS Act, Zinsner said. The act allocates billions in grants and other incentives to boost chip manufacturing in the United States.

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