Intel has limited customer commitments for new chip tech, but striving to become contract manufacturer

From Yahoo Finance: 2025-05-13 13:38:00

Intel’s finance chief David Zinsner announced that the volume of processors to be produced for external customers using upcoming manufacturing technology is currently “not significant.” The company is striving to become a contract manufacturer of chips, with several customers planning to build test chips for the new process.

AI chip front-runner Nvidia and custom chipmaker Broadcom are running manufacturing tests with Intel. The foundry unit, called foundry, is expected to break-even in 2027 and would require external customers to generate low to mid-single digit billions in revenue to achieve that goal.

New CEO Lip-Bu Tan is focusing on undoing past missteps at Intel by retaining the practice of manufacturing its own chips and producing processors for others. Tan has streamlined the organization by divesting non-core assets, such as some of its Altera stake. Zinsner indicated that Tan is not planning massive changes at this time.

Read more: Intel has limited customer commitments for latest chip manufacturing tech, CFO says