Asia Tech Wire (Sep 5) -- Intel CFO David Zinsner said at an investor briefing on Wednesday that the company expects its contract chip manufacturing business to bring in "meaningful" revenue in 2027.

He pointed out that Intel is currently discussing contract manufacturing with 12 potential customers, and expects to see the relevant revenue partially booked in 2026 and fully booked in 2027.

Zinsner also said the company decided not to promote its 20A manufacturing process, but to focus on the more advanced 18A manufacturing process.

Intel's foundry unit currently generates revenue from its advanced packaging operations.

Reuters reported on Wednesday that Intel's 18A manufacturing process failed Broadcom's test.

In this regard, a spokesperson for Broadcom said that the company "is evaluating the product and service offerings of Intel Foundry and have not concluded that evaluation."

An Intel spokesperson said, "Intel 18A is powered on, healthy and yielding well, and we remain fully on track to begin high volume manufacturing next year."

In addition, Intel is implementing a turnaround plan that includes divesting some businesses and laying off 15% of its workforce.

Zinsner said Intel will essentially complete the layoffs by the time it reports current quarterly earnings.

Intel also revealed that the company is unlikely to receive funding from the U.S. CHIPS Act before the end of the year.