Intel Corp (INTC.O) announced its manufacturing division would behave like a distinct company and start generating a margin but gave no schedule for ramping up. The chipmaker’s shares fell around 5%.
Intel’s turnaround strategy requires it to provide manufacturing services to other companies, including its competitors. The company did not disclose a new external customer for its foundry services.
On an investor call, CFO David Zinsner said Intel’s business units will now have a customer-supplier relationship with the manufacturing company.
He said Intel would be the second-largest foundry next year, with around $20 billion in manufacturing revenue.
Summit Insights Group analyst Kinngai Chan said Taiwan Semiconductor Manufacturing Co. (2330. TW) revenues are anticipated to reach $85 billion in 2024, dwarfing the business’s projection.
“The presentation essentially tells investors that its current manufacturing is sub-scale and could remain sub-scale for a while,” Chan said.
