Intel Chip-making Unit Records $7 Billion Loss

Intel has revealed a significant increase in operating losses for its foundry business, dealing a blow to the chipmaker's efforts to reclaim its technological edge lost in recent years to Taiwan Semiconductor Manufacturing (TSMC), as reported by Stephen Nellis and Max A. Cherney for Reuters.

The foundry business's struggles were attributed to past missteps, including the decision made a year ago to forgo the use of extreme ultraviolet (EUV) machines from Dutch firm ASML. I Photo: Intel Corporation

In 2023, Intel's manufacturing unit reported operating losses of $7 billion, a notable rise from the $5.2 billion losses incurred the previous year.

Revenue for the unit amounted to $18.9 billion in 2023, marking a 31% decrease from $27.49 billion the year before. The disclosure led to a 4.3% drop in Intel's shares after the documents were filed with the US Securities and Exchange Commission (SEC).

During an investor presentation, Chief Executive Pat Gelsinger acknowledged that 2024 would likely see the peak of operating losses for the company's chipmaking business. Gelsinger projected a break-even on an operating basis around 2027.

He attributed the foundry business's struggles to past missteps, including the decision made a year ago to forgo the use of extreme ultraviolet (EUV) machines from Dutch firm ASML. Despite their high cost, these machines are more cost-effective compared to earlier chip-making tools.

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