By Max A. Cherney

(Reuters) - Intel will begin to generate a "meaningful" amount of revenue from its contract chip manufacturing business in 2027, the company's CFO said at an investor conference on Wednesday.

Intel is currently in talks with 12 potential customers that finance chief David Zinsner said will generate some revenue in 2026 and additional cash in 2027. The company has decided not to market its 20A manufacturing process in favor of focusing on the more advanced 18A manufacturing process, the CFO said.

The foundry business currently generates revenue from its advanced packaging business, Zinsner said.

Zinsner did not directly address a Reuters report on Wednesday about Intel failing to produce viable test wafers for Broadcom, a potential manufacturing customer.

The Santa Clara, California-based company is amid a turnaround plan that includes shedding a number of businesses and a 15% cut to its staff. CEO Pat Gelsinger and other key executives are expected to present plans to the company’s board of directors at a mid-September meeting, Reuters reported on Sunday.

Cuts to the company will mostly be completed by the time Intel announces the current quarter’s earnings, Zinsner said. The company is considering a wide range of options as it ponders what to cut or keep.

The company is "not likely to see money" until the end of the year from the U.S. CHIPS Act, Zinsner said. The act is allocating billions in grants and other incentives to spur chip manufacturing in the United States.

(Max Cherney in San Francisco; Editing by Chris Reese and Mark Porter)