U.S Chipmaker Intel Corp (INTC.O) claims that its manufacturing division will operate independently and produce a profit.
However, it provided no specific date for when it will begin scaling up, sending the chipmaker’s stock down roughly 5%.
Additionally, the company made no mention of a new external client for the foundry services business, a crucial component of Intel’s turnaround plans in which the company offers its manufacturing capabilities to other businesses, including its rivals.
According to Chief Financial Officer David Zinsner, the manufacturing division will now have a customer-supplier relationship with Intel’s own business groups.
Intel will be the second largest foundry next year, with more than $20 billion in manufacturing sales, he said.
However, the forecast for the business pales in comparison to Taiwan Semiconductor Manufacturing Co’s (2330.TW) 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 sub-scale and could remain sub-scale for a while,” Chan added.
