Intel Corp.’s “core strategy” remains intact and the chipmaker will continue to focus on its transition to a “world-class foundry” while maintaining a strong product side of the business, Dave Zinsner, the company’s newly appointed interim co-CEO, said Wednesday.

Intel “stands by” its fourth quarter guidance and will provide a financial update in January, Zinsner said during the company’s Dec. 4 presentation at the UBS Global Technology and AI Conference held in Scottsdale.

“The board was pretty clear that the core strategy remains intact. We still would be a world-class foundry. We still would be the Western provider of leading-edge silicon to customers,” Zinsler said. “That remains our goal, but we also understand that it’s important for the No. 1 customer of foundry to be successful in order for foundry to be successful and so the board wants to also put emphasis on executing on the product side of the business.”

Intel’s participation at the conference comes on the heels of the abrupt departure of former CEO Pat Gelsinger. Zinsner and Michelle Johnston Holthaus were installed as interim co-CEOs while the company searches for a replacement.

Zinsler, who is also Intel’s executive vice president and chief financial officer, said the company remains engaged with foundry customers and has a number of RFPs it’s working through amid its change in leadership.

Zinsler told the audience he remains committed to driving returns on investments for the company’s foundry business.

“That’s what we’re committed to do and that’s going to be one of my major focuses, definitely, as I’m CFO,” he said. “But of course, in the interim period where I’m CEO, I’ll obviously be focused on that as well.”

Intel investing $32B to expand Chandler factories

Intel’s foundry operations have significant ties to the Valley as the company is currently investing $32 billion to expand its Ocotillo campus in Chandler, the Business Journal previously reported. Intel is Arizona’s largest tech employer, with some 12,000 workers in Chandler and plans to hire a few thousand more to staff up the new factory that is expected to go into operation in late 2025.

There’s a significant cultural shift, however, that needs to occur within Intel for the company to further develop its foundry business and be successful in the semiconductor industry, said Naga Chandrasekaran, chief global operations officer, executive vice president and general manager of Intel foundry manufacturing and supply chain.

“Part of what I see happening today is [technology development] is driving the technology, but manufacturing doesn’t have the mindset of continuous improvement, year-over-year changes and constant innovation,” he said, adding small changes in process and equipment could drive cost reduction and performance improvements. “That mindset is not there as a company.”

Chandrasekaran said the company continues to make progress on its 18A process node technology.

“There’s several milestones that we have and there are still many steps ahead for the development,” Chandrasekaran said. “Will there be challenges? There will be, but I think we are progressing.”

The company plans to get the 18A process node into engineering samples and in customers’ hands to gather feedback. Then, it will ramp up production in Oregon by the first half of 2025, he said.

“In the second half of 2025, our milestone is certifying the node, getting it ramped in Arizona, and getting the product on the shelves so that customers can buy it,” he said. “That’s the milestones and we are working towards meeting all those milestones over the next year.”

Intel will produce its first 18A Xeon processors — called Clearwater Forest — at its Arizona fabs.

Intel recently finalized an agreement with the U.S. Department of Commerce for a $7.8 billion CHIPS Act grant to support expansion of its fabs in Arizona, Ohio, Oregon and New Mexico.

In Arizona, the CHIPS Act grant will help support Intel’s expansion in Chandler.

When asked whether Intel’s CHIPS Act award could face renegotiations for project milestones under the incoming Trump administration, Zinsner said he was confident in the company’s “ironclad agreement” with the U.S. Department of Commerce.

“It lays out all the milestones and when the payments come. We’re already actually a third of the way through milestones,” he said, adding the incoming Trump administration values U.S. manufacturing.

“I would assume that we’re going to be aided by the new administration as we execute on the strategy,” he said. “I’d also point out that when you look at the incentives that we’re getting to invest in the U.S., 75% of it is actually an investment tax credit. That’s a little bit more straightforward in terms of how it comes to us.”