Intel (INTC) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic direction and leadership

• Strategy remains focused on building a world-class fabless company and foundry, with interim CEOs given full agency to execute.

• Product health is prioritized as foundational for foundry success, with increased autonomy for product leadership.

• Board additions were planned before the CEO transition, emphasizing operational semiconductor expertise.

• Standing up Intel Foundry as a wholly owned subsidiary and seeking external investors are key steps for value creation.

• Board is balancing value creation, timeline, and risk, with optionality for monetizing assets.

Foundry and manufacturing strategy

• External foundry suppliers like TSMC will be used longer than previously planned, maintaining competition and flexibility.

• Incremental returns on capital are a key metric for foundry investment decisions.

• Intel aims to be the second largest external foundry by 2030, targeting $15 billion in revenue.

• Operational separation of the foundry business is underway to meet customer expectations.

• Key milestones for 18A include Panther Lake launch in H2 2024 and first external design tape-out in H1 2024.

Product roadmap and technology

• Panther Lake is on track for H2 2024 launch, with yields ahead of previous nodes; volume expected in 2025.

• Clearwater Forest delayed to H1 2025 due to advanced packaging, not wafer issues; samples to ship in H2 2024.

• Product roadmap changes include shifting focus from Falcon Shores to Jaguar Shores for AI accelerators.

• Rationalizing SKUs and driving cost reductions are expected to boost profitability.

• Emphasis on maintaining strong client share and regaining server share as critical for long-term health.