• Wed. Apr 17th, 2024

Intel’s Foundry Units: Braving Losses and Competition with New US Plans and EUV Technology

BySamantha Jones

Apr 3, 2024
Intel’s Foundry Business Continues to Suffer from $7 Billion Operating Loss

On Tuesday, Intel reported significant operating losses for its chip manufacturing unit Intel Foundry, with a projected loss of $7 billion in 2023. This follows the prior year’s loss of $5.2 billion, despite a revenue drop of 31% from the previous year, with $18.9 billion in revenue for 2023 compared to $27.49 billion in 2022. Despite these challenges, Intel has announced plans to invest $100 billion into chip factories in four US states as part of an effort to increase domestic semiconductor production and secure funding from the CHIPS and Science Act.

Intel’s American foundry plans helped the company secure nearly $20 billion in CHIPS and Science Act funding, which CEO Pat Gelsinger expressed optimism about the future of Intel Foundry, even though he expects more losses in 2024 and anticipates the unit may not break even until 2030. However, these assurances did not prevent a 5% drop in Intel’s shares during trading on Wednesday. The company still has a long way to catch up with semiconductor production leader Taiwan Semiconductor Manufacturing (TSMC), which is expected to see sales expand by 20% in 2024 to $83.4 billion.

Gelsinger attributed the revenue slide to past missteps, including a decision not to invest in extreme ultraviolet (EUV) machines from Dutch firm ASML. He shared that Intel now buys about 30% of its silicon wafers and emphasized the importance of improving EUV capabilities to bring more production in-house. By doing so, Intel aims to become more competitive in terms of price, performance, and overall leadership.

Finally, Intel announced it would begin reporting the results of its manufacturing operations as a standalone unit. Gelsinger emphasized the importance of transparency and accountability in this move, highlighting the company’s commitment to addressing past challenges and moving towards a more successful future.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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