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Intel reveals a $7 billion operating loss for its chip-making division

To turn things around, Intel plans to invest a whopping $100 billion in expanding factories across four US states

Update : 04 Apr 2024, 11:47 AM

Intel faced significant losses in its foundry division, with operating losses soaring to $7 billion in 2023, up from $5.2 billion the year before. Revenue took a nosedive too, dropping by 31% to $18.9 billion. These revelations caused Intel shares to dip by 4.3% after disclosure to the US Securities and Exchange Commission (SEC).

However, the CEO told the media that he was optimistic, aiming to break even by 2027. He pointed to past decisions, like skipping on cost-effective extreme ultraviolet (EUV) machines from ASML, as contributing to the foundry's woes.

In response, Intel has outsourced 30% of its wafer production to companies like TSMC but plans to cut this to 20%. Switching to EUV tools, Intel hopes to bounce back in terms of price and performance.

To turn things around, Intel plans to invest a whopping $100 billion in expanding factories across four US states. They also plan to woo external firms by reporting manufacturing results separately, signalling a shift in strategy to catch up with leaders like TSMC and Samsung Electronics.

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