Intel Corp at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Harlan Sur - JPMorgan - Analyst : Normally, I would start off the discussion on your product portfolio. But I want to start off with manufacturing because the challenge here for Intel is twofold. One is drive back to a leadership position in leading-edge process technologies, right? Because leading-edge process technologies drives a big part of the performance of the core compute portfolio, right? But number two is that you can then take your leading-edge technology to build and then leverage that to build a world-class foundry business. And again, it looks like no change to process technology roadmaps that were laid out by Lip-Bu. But what is he doing differently to accomplish this twofold strategy, right? And maybe use 18A process technology, as an example, what is the team doing to drive differentiation better economics REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, INTC.OQ - Intel Corp at JPMorgan Global Technology, Media and Communications Conference on your core products like your upcoming PC client CPU product called Panther Lake? And what are you doing to attract more external foundry customers to adopt 18A?

Question: Harlan Sur - JPMorgan - Analyst : Yes, it was good to see the good participation at your recent direct foundry event, I think, held in Santa Clara. And it was also good to see, to your point, that Intel has always had a strategy of we develop our processes for our products, right? And then we take this process and whoever wants to use it as external foundry customer go ahead and use it, right? It's never been with a view of what do our customers really want, right? What really wants, right? But now it's you can see the strategy shift, right? You're developing like you said, for 18A and for 14A, you've got several different flavors, right, low power, high performance and so on. The same type of offerings as your world-class foundry competitors. So the services aspect of foundry is moving more and more towards like what your customers would expect. That being said, on 18A, you've had some traction, right? And previously, I think the team articulated that you were on track to tape out your first external design on 18A in the first half of the year. Did the team execute to that? And then whether it's 18A or 14A, I mean how many customers REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, INTC.OQ - Intel Corp at JPMorgan Global Technology, Media and Communications Conference -- external customers have committed to Intel Foundry? And are they a mix of fabless semi customers, cloud and hyperscalers, OEMs? Like any color there would be great.

Question: Harlan Sur - JPMorgan - Analyst : From a financial perspective, I believe the target is still to drive Intel Foundry to operating profitability breakeven exiting calendar '27. Remind us on the parameters needed to achieve that, right? Mix of internal versus external customers, process technology mix. And by calendar '27, like what do you anticipate your external wafer usage as a percent of total wafer shipments will be? I think today, it's about 30%. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, INTC.OQ - Intel Corp at JPMorgan Global Technology, Media and Communications Conference

Question: Harlan Sur - JPMorgan - Analyst : The other one was about Intel on your core products, external versus internal mix, yes. Today, I think it's 30%, right?

Question: Harlan Sur - JPMorgan - Analyst : So is the right way to think about the mix maybe 20% to 30%?

Question: Harlan Sur - JPMorgan - Analyst : Okay. Let's turn over to the core products. On core internal CPU products and internal product development efforts, given Lip-Bu's familiarity and expertise on chip design implementation, has he assessed Intel's chip design and verification flows, IP development capabilities, software development, execution? Where does he see the opportunities to improve the quality, efficiency, execution of Intel's chip design infrastructure?

Question: Harlan Sur - JPMorgan - Analyst : In client PC, the big intro this year is the ramp of your lead 18A product for PC client called Panther Lake. It was clear that the team slightly down ticked this last earnings on the ramp of Panther Lake from what used to be second half of this year to at least one SKU exiting this year? What happened? Is this more of a product delay? In other words, design-related issues side or it's just more that the 18A process technology and manufacturing node will be quite ready?

Question: Harlan Sur - JPMorgan - Analyst : On service CPU product and platforms, launch of Granite Rapids last year, was a very good step in the right direction, right? You're shrinking the competitive gap between you and your competitor, but there still is a gap, right? And next in the lineup is Diamond Rapids. What's the timing on Diamond Rapids? What's the early feedback from customers? And when does Intel really fully expect to sort of close that server performance gap with your competitor?

Question: Harlan Sur - JPMorgan - Analyst : On the financials last year, you guys talked about free cash flow breakeven this year, then you push -- kind of pushed that out free cash flow breakeven exiting. This year, last earnings, you talked about focusing more on operating cash flow. So how should we think about your operating and/or free cash flow potential this year? And how do we think about it over the next few years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, INTC.OQ - Intel Corp at JPMorgan Global Technology, Media and Communications Conference

Question: Harlan Sur - JPMorgan - Analyst : Perfect. Appreciate your participation, Dave, today, and look forward to monitoring the progress of the team this year.