By Max A. Cherney

(Reuters) – Intel will begin to generate a “meaningful” amount of revenue from its contract chip manufacturing business in 2027, the corporate’s CFO said at an investor conference on Wednesday.

Intel is currently in talks with 12 potential customers that finance chief David Zinsner said will generate some revenue in 2026 and extra money in 2027. The corporate has decided to not market its 20A manufacturing process in favor of specializing in the more advanced 18A manufacturing process, the CFO said.

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

Zinsner did indirectly address a Reuters report on Wednesday about Intel failing to supply viable test wafers for Broadcom, a possible manufacturing customer.

The Santa Clara, California-based company is amid a turnaround plan that features shedding quite a few businesses and a 15% cut to its staff. CEO Pat Gelsinger and other key executives are expected to present plans to the corporate’s board of directors at a mid-September meeting, Reuters reported on Sunday.

Cuts to the corporate will mostly be accomplished by the point Intel broadcasts the present quarter’s earnings, Zinsner said. The corporate is considering a big selection of options because it ponders what to chop or keep.

The corporate is “not more likely to see money” until the tip of the yr from the U.S. CHIPS Act, Zinsner said. The act is allocating billions in grants and other incentives to spur chip manufacturing in the USA.

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