Intel (INTC) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Strategic investments and capital structure

• Secured $5.7B in new government grants, eliminating uncertainty around prior grants and providing upfront liquidity; $3B to be paid over several years.

• U.S. government now holds an equity stake with limited governance, aligning interests with other shareholders and focusing on value creation.

• SoftBank investment driven by confidence in leadership and AI opportunities; $2B expected by quarter-end, pending regulatory filings.

• Recent capital raises, including Mobileye stock sale and Altera closing, strengthen liquidity and support de-leveraging; $3.8B in debt maturing this year will not be refinanced.

• Foundry subsidiary structure enables future external investments, though significant outside investment is not expected soon.

Foundry business and technology roadmap

• Foundry set up as a subsidiary to allow operational separation and potential for external investment.

• 18A node to be a workhorse through 2030, with Panther Lake and Clearwater Forest ramping in 2024–2025; peak volume expected by 2030.

• 14A node introduction targeted for 2028–2029, with both internal and external customers; higher costs due to advanced lithography and High-NA EUV tools.

• Capacity expansion will be tied to customer demand, emphasizing financial discipline and ROI.

• Ongoing customer engagement for 18A and 14A; confidence in securing external customers as process maturity improves.

Operational transformation and cost structure

• Separate P&Ls for products and foundry businesses implemented, driving more focused decision-making and optimization.

• New ERP systems for each business expected by end of 2027, furthering operational autonomy.

• Workforce reductions targeted at bureaucracy, halving management layers to speed up decision-making.

• Talent attraction remains strong, especially in AI, despite ongoing reductions.

• Margin improvement targeted, with a near-term goal to move from 30s to 40s, driven by cost focus and competitive product launches.