(Reuters) – Intel Corp stated on Wednesday its manufacturing enterprise will work like a separate unit and can start to generate a margin, however gave no clear timeline on when it would begin scaling up, sending the chipmaker’s shares down about 5%.
The corporate additionally didn’t title a brand new exterior buyer for the enterprise as a part of its foundry providers, a key aspect of Intel’s turnaround plans whereby it would supply its manufacturing providers to different corporations together with its rivals.
Intel’s inside enterprise items will now have a customer-supplier relationship with the manufacturing enterprise, Chief Monetary Officer David Zinsner stated on an investor name.
Primarily based on that mannequin, Intel would be the second largest foundry subsequent 12 months with manufacturing income of greater than $20 billion, he stated.
Nevertheless, the forecast for the enterprise pales compared to Taiwan Semiconductor Manufacturing Co’s gross sales, that are anticipated to be near $85 billion in 2024, stated Summit Insights Group analyst Kinngai Chan.
“The presentation primarily tells buyers that its present manufacturing is sub-scale and will stay sub-scale for some time,” Chan added.
(Reporting by Chavi Mehta in Bengaluru; Modifying by Maju Samuel)