Intel discloses US$7 billion operating loss for chip-making unit
- Intel said the manufacturing unit had US$7 billion in operating losses for 2023, a steeper loss than the US$5.2 billion in operating losses the year before
- CEO Gelsinger said the foundry business was weighed down by bad decisions, including one a year ago against using EUV machines from Dutch firm ASML
Intel on Tuesday disclosed deepening operating losses for its foundry business, a blow to the chip maker as it tries to regain a technology lead it lost in recent years to Taiwan Semiconductor Manufacturing Co (TSMC).
Intel said its contract manufacturing unit had US$7 billion in operating losses for 2023, a steeper loss than the US$5.2 billion in operating losses the year before. The unit had revenue of US$18.9 billion for 2023, down 31 per cent from US$27.49 billion the year before.
The company's shares were down 4.3 per cent after the documents were filed with the US Securities and Exchange Commission.
During a presentation for investors, Intel chief executive Pat Gelsinger said 2024 would be the year of worst operating losses for the company’s contract chip-making business and that it expects to break even on an operating basis by about 2027.
Gelsinger said the foundry business was weighed down by bad decisions, including one a year ago against using extreme ultraviolet (EUV) machines from Dutch firm ASML. While those machines can cost more than US$150 million, they are more cost-effective than earlier chip-making tools.