Intel has shared its future strategy and discussed ongoing transformation efforts to reach financial stability, operational efficiency, and growth targets. The company is optimistic about its turnaround plan despite the numerous challenges ahead. The initial reception to these changes seems to be positive, as the stock jumped by about 2.54% today.
On Thursday, September 4, 2025, Intel presented a strategy overview at Citi’s 2025 Global Technology, Media and Telecommunications Conference. The discussion highlighted plans to de-leverage its balance sheet with investments from the U.S. Government and SoftBank. Starting with the $5.7bn of U.S. grant – $2.2 billion of which are already received – Intel plans to use these funds plus other proceeds from asset sales to pay back about $3.8bn of maturing debt this year. These assets include nearly $1 billion from the Mobileye stock sale, which should enhance the liquidity position.
Chief Financial Officer, David Zinsner, has also told investors that Intel will continue putting certain products on TSMC’s wafers forever, as the company focuses on separating its design and foundry businesses to improve efficiency. This statement is not surprising considering 30% of the silicon comes from TSMC already. Intel will likely keep high-volume chips in its fabs, while placing others with TSMC. The idea is to grab more foundry customers while lowering near-term cash burn. Intel wants to set up its foundry business as a subsidiary to improve accountability, but won’t be selling more than 49% to external customers.
According to Zinsner, the initial $2.2 billion U.S. transaction was important for Intel, as it eliminated uncertainty around those grants. Furthermore, since these funds will translate into equity stakes for the U.S. Government, they represent a sort of endorsement of the brand, which should incentivise Intel to be successful, especially since the U.S. Government is expected to vote in line with the board’s recommendations. The remaining $3 billion grant, which is expected to be paid over the next couple of years, should further help Intel get back on its feet. Zinsner has also added that the firm’s Altera divestment will close in the upcoming weeks, providing an additional $3.5 billion. Not to forget Softbank’s $2 billion investment, which is pending regulatory approval.
All of these capital injections should notably strengthen Intel’s cash position, providing the financial flexibility to pursue its debt-reduction strategy. The company has apparently learned from previous mistakes, where it spent considerable money ahead of demand.
For the near future, CEO, Lip-Bu Tan, seems to put a lot of confidence in the upcoming 14A process despite being more costly than 18A. That said, the company will only build 14A manufacturing capacity if it secures commitments from external customers. Intel’s Panther Lake CPUs are expected to launch by the end of the year, manufactured using the 18A process, with major offerings expected by 2028, leveraging the 14A node. The company will continue focusing on improving its product portfolio while enhancing pricing and market penetration. We shall see the fruits of these efforts soon.
