Intel Corp. outlined a faster recovery path at the Deutsche Bank 2026 Technology Conference on Wednesday, raising its 2026 capital expenditure forecast to $20 billion from $18 billion and completing a $23 billion equity offering.
The Santa Clara-based chipmaker said its Intel 14A process node is on track for risk production in 2027 and high-volume manufacturing in 2028, with the Intel 14A Process Design Kit 0.9 slated for October 2024. Intel also expects its Nova Lake CPU to arrive in 2025, while advanced packaging technology EMIB-T is projected to begin contributing revenue in the second half of 2027, becoming a recurring factor in 2028 and reaching full potential by 2029.
Gross margin performance improved in 2024, landing in the low 40% range and exceeding prior guidance in the high 30s. Intel reiterated long-term targets of mid-40s, high 40s and eventually above 50%, with foundry and ASIC businesses expected to start near 40% gross margins. Advanced packaging margins are targeted at approximately 40% gross and 30% operating. Foundry operating losses remain around $2.5 billion per quarter, while the company reported double-digit server unit growth for 2024 and 2025.
Intel reduced management layers from 12 to six and cut Vice President positions from roughly 450 to 200 as part of restructuring efforts. The company’s internal foundry break-even target is set for the end of 2027, though Chief Financial Officer David Zinsner noted this could extend to the end of 2028 depending on client acceleration and scaling.
Zinsner highlighted Intel 14A’s rapid defect reduction, calling it the fastest pace since the 22-nanometer node. He also warned that agentic workloads may require four to six times more CPUs than traditional training data centers. Regarding memory pricing pressures, Zinsner indicated the impact on client demand through 2025 is manageable given Intel’s priority to supply data center customers.
Intel’s manufacturing footprint includes Fab 52 in Ireland running Intel 3 for Granite Rapids, Fab 52 and Fab 62 in Arizona—with Fab 52 on Intel 18A and Fab 62 nearing readiness—and Oregon transitioning from pilot work to volume production as the Intel 14A pilot line. In Ohio, Module 1 is under construction with capacity for up to four fabs over time.
