Intel CFO David Zinsner said during a conference call with investors on Wednesday, September 4, 2024, that the contract chip manufacturing business will start generating “significant” revenue in 2027. This was reported by Reuters.

The company is currently negotiating with 12 potential customers, which, according to Zinsner, will bring some revenue in 2026 and additional revenue in 2027. He also noted that the company will focus on a more advanced 18A production process instead of 20A.

At the same time, he did not comment on rumors that the company was unable to produce working test circuits for Broadcom, one of the potential customers of contract manufacturing.

However, Zinsner did touch a bit on the company’s current financial situation and its future. He said that the foundry business is now generating revenue from the advanced chip packaging business.

Zinsner also noted that the company is not likely to receive any money from the Chip and Science Act by the end of the year. which allows the government to allocate about $280 billion for domestic research and production of semiconductors.

These statements have nothing to do with earlier reports that CEO Pat Gelsinger and several other key executives are preparing a plan to get Intel out of its predicament and cut costs. This plan should be presented sometime in mid-September during a board meeting.

As part of this plan, Intel is already laying off about 15,000 employees, and, according to Zinsner, these cuts will be mostly completed by the end of this quarter. In addition, they are considering selling a certain part of the business and canceling some projects.