• Wed. Apr 17th, 2024

Intel’s Struggles with Wafer Production and EUV Technology: A Turning Point for the Chip Industry?

BySamantha Jones

Apr 3, 2024
Intel’s chip manufacturing segment suffered a $7 billion loss in the previous year

Intel’s chip-making division faced significant challenges in 2023, with the company accumulating $7 billion in operating losses. This was a substantial increase from the $5.2 billion lost in 2022 and marked a 31 percent decrease from the year before, when Intel made $27.49 billion. Despite generating $18.9 billion in revenue in 2023, this figure was still lower than expected.

CEO Pat Gelsinger acknowledged that the losses were not unexpected, attributing them to past mistakes catching up with the company’s foundry business. To address this, Intel opted to outsource around 30 percent of its wafer production to other foundries, including key competitor TSMC. However, Intel has now made a strategic investment in using extreme ultraviolet (EUV) machines from ASML, a move that Gelsinger believes will help the company break even by 2027.

ASML’s technology is touted as making mass production of computer chips more cost-effective for companies like Intel, potentially signaling a positive shift for the chipmaker. In support of its goals, Intel plans to invest around $100 billion in building or expanding its chip foundries across four states, with up to $8.5 billion in funding from the U.S. government under the new CHIPS Act.

While Microsoft has recently become a foundry customer for Intel, there is uncertainty about how many more companies will need to be onboarded for Intel to achieve its break-even target in the coming years. Successfully persuading companies to use its chipmaking services will be crucial for Intel’s future success.

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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