Wednesday its manufacturing business will work like a separate unit and will begin to generate a margin, but gave no clear timeline on when it will start scaling up, sending the chip maker’s shares down about 5%.
The company also did not name a new external customer for the business as part of its foundry services, a key element of Intel’s turnaround plans wherein it will offer its manufacturing services to other companies including its competitors. Intel’s internal business units will now have a customer/supplier relationship with the manufacturing business, chief financial officer David Zinsner said on an investor call.will be the second largest foundry next year with manufacturing revenue of more than US$20-billion, he said.However, the forecast for the business pales in comparison to TSMC’s sales, which are expected to be close to $85-billion in 2024, said Summit Insights Group analyst Kinngai Chan.
“The presentation essentially tells investors that its current manufacturing is subscale and could remain subscale for a while,” Chan added. —