Intel posts $7 billion loss in chipmaking unit

Intel has released a report on the operating losses of its foundry business due to high competition and poor decisions.

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The company has recently been trying to regain the technological leadership it lost under pressure from another giant, Taiwan Semiconductor Manufacturing.

Intel said that its manufacturing unit had a $7 billion operating loss in 2023, and last year the company lost $5.2 billion. That is, in 2023, the division's revenue was only $19 billion, down 31% from $27 billion a year earlier.

CEO Pat Helsinger said that 2024 will be a year of terrible operating losses for the chip business, and that the company expects it to reach earnings by around 2027.

He also added that the foundry business has suffered due to poor decisions, including a year ago when the company refused to purchase new ultraviolet (EUV) machines. Although they cost $150 million, they are more cost-effective than previous chip-making tools.

Source: Reuters