Latest news with #contractmanufacturing
Khaleej Times
a day ago
- Business
- Khaleej Times
Intel's chip contracting plan in spotlight on earnings day
Faced with slumping quarterly sales and a burgeoning loss, Intel shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7% to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. Streamlining Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51% stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16% so far this year, compared with a 13.23% rise in the broader chip index. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2% to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument flagged similar troubles on Tuesday, sending its shares down 11% after hours. Chip-equipment maker ASML and TSMC have also warned tariff-related uncertainty has muddied the outlook for them. Revenue in Intel's data center unit, however, is expected to jump about 20% to $3.66 billion, signaling improving demand for traditional server chips after several quarters of poor sales.
CNA
a day ago
- Business
- CNA
Intel's chip contracting plan in spotlight on earnings day
Faced with slumping quarterly sales and a burgeoning loss, Intel shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7 per cent to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. STREAMLINING Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51 per cent stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16 per cent so far this year, compared with a 13.23 per cent rise in the broader chip index. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2 per cent to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument flagged similar troubles on Tuesday, sending its shares down 11 per cent after hours. Chip-equipment maker ASML and TSMC have also warned tariff-related uncertainty has muddied the outlook for them.
Yahoo
a day ago
- Business
- Yahoo
Intel's chip contracting plan in spotlight on earnings day
By Arsheeya Bajwa (Reuters) -Faced with slumping quarterly sales and a burgeoning loss, Intel shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7% to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. STREAMLINING Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51% stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16% so far this year, compared with a 13.23% rise in the broader chip index. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2% to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument flagged similar troubles on Tuesday, sending its shares down 11% after hours. Chip-equipment maker ASML and TSMC have also warned tariff-related uncertainty has muddied the outlook for them. Revenue in Intel's data center unit, however, is expected to jump about 20% to $3.66 billion, signaling improving demand for traditional server chips after several quarters of poor sales. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Intel's chip contracting plan in spotlight on earnings day
July 23 (Reuters) - Faced with slumping quarterly sales and a burgeoning loss, Intel (INTC.O), opens new tab shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD (AMD.O), opens new tab has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC ( opens new tab, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7% to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51% stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16% so far this year, compared with a 13.23% rise in the broader chip index (.SOX), opens new tab. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2% to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument (TXN.O), opens new tab flagged similar troubles on Tuesday, sending its shares down 11% after hours. Chip-equipment maker ASML ( opens new tab and TSMC ( opens new tab have also warned tariff-related uncertainty has muddied the outlook for them. Revenue in Intel's data center unit, however, is expected to jump about 20% to $3.66 billion, signaling improving demand for traditional server chips after several quarters of poor sales.
National Post
16-07-2025
- Business
- National Post
Contract Packaging Association Expands Through Strategic Combination with F4SS as Food / CPG Industries Grapple with Regulatory and Market Transformations
Article content Combined organization creates industry's largest and most comprehensive manufacturer and brand platform amid rapidly evolving CPG landscape Article content HERNDON, Va. — The Contract Packaging Association (CPA) today announced its strategic inclusion of The Foundation for Supply Chain Solutions (F4SS), creating the industry's most powerful resource for food/CPG contract manufacturers and brand owners navigating an increasingly complex CPG environment marked by explosive private label growth, emerging brand proliferation, and evolving regulatory demands. Article content Combined, the two complementary organizations serve hundreds of member companies across the external manufacturing, contract packaging, and brand owner spectrum. The unified platform positions CPA as the definitive authority on external manufacturing relationships in a market projected to reach $130 billion by 2028. Article content Industry Transformation Drives Strategic Combination Article content The move comes as the food/CPG industry experiences unprecedented growth and disruption. Private labels now command 25% of total CPG sales, while emerging brands are reshaping consumer expectations, and regulatory requirements continue tightening around food safety, sustainability, and labeling. Contract manufacturers must simultaneously serve global established brands, fast-growing private label programs, and agile emerging companies—each with distinct operational demands. Article content 'The industry is evolving at breakneck speed,' said Ron Puvak, Executive Director of CPA. 'Private label growth, emerging brand innovation, and shifting consumer preferences require contract manufacturers and brands to be more strategic, more agile, and more connected than ever before. This merger creates the comprehensive platform our members need to thrive in this new reality.' Article content Enhanced Member Value Through Combined Expertise Article content The integration delivers immediate benefits by combining CPA's 30-year legacy in contract packaging with F4SS's specialized expertise in supply chain optimization: Article content Deeper Industry Intelligence: Combined membership base provides unprecedented market visibility across traditional brands, private label operations, and emerging companies Broader Network Access: Unified directory connects contract manufacturers with diverse brand decision-makers from Fortune 500 companies to startup innovators Regulatory Navigation: Enhanced resources help members adapt to evolving food safety, sustainability, and labeling requirements Innovation Acceleration: Joint initiative teams drive faster implementation of technologies needed to serve diverse client bases Article content Addressing Market Complexity Article content F4SS brings critical capabilities in managing complex brand-external manufacturer relationships, including proprietary benchmarking tools that help members optimize operations for everything from high-volume private label contracts to small-batch emerging brand partnerships. Article content 'Our combined membership base represents the full spectrum of today's CPG ecosystem,' said Michele Cerminaro, former F4SS Executive Director, now CPA's Director of Strategic Partnerships. 'This diversity adds tremendous depth and value—members gain insights from private label efficiency experts, emerging brand innovators, and traditional manufacturing leaders all under one platform.' Article content Immediate Integration Benefits Article content Current F4SS members automatically receive full CPA membership benefits, while CPA members gain access to F4SS's strategic sourcing tools and benchmarking resources. The integration will be completed by September 2025. Article content About CPA Article content The new, expanded CPA serves as the premier resource for the contract manufacturing and packaging industry, serving external manufacturers, brands, industry providers, the broader CPG ecosystem through advocacy, education, networking, and strategic research. The organization's flagship event, ENGAGE: The Contract Packaging and Manufacturing Experience, will occur February 24-26, 2026, in Las Vegas, NV. Article content Article content Article content Article content Contacts Article content Media Contacts: Article content Article content Ron Puvak, Executive Director, CPA Article content Article content Article content Article content Article content
