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Last year, Intel’s chipmaking business suffered a $7 billion loss

Byeditor

Apr 3, 2024

According to Reuters, Intel’s chip-making division experienced operating losses of $7 billion in 2023, a significant increase from the $5.2 billion lost in 2022. Despite generating $18.9 billion in revenue in 2023, this number represents a 31 percent decrease from the $27.49 billion earned the previous year.

CEO Pat Gelsinger attributes the substantial losses to Intel’s past mistakes catching up with its foundry business. As a result, the chipmaker outsourced approximately 30 percent of its wafer production to competitors like TSMC. However, Intel is now investing in utilizing extreme ultraviolet (EUV) machines from ASML, a decision that Gelsinger believes will help the company break even by 2027.

ASML’s technology is said to make mass production of computer chips more cost-effective for companies like Intel. To support this initiative, Intel plans to spend around $100 billion on building or expanding chip foundries in four states and will receive up to $8.5 billion in funding from the U.S. government through the CHIPS Act.

In order to achieve its goals, Intel needs to attract more companies to use its chipmaking services. While Microsoft recently became a foundry customer, it remains uncertain how many more partnerships Intel must secure to meet its financial targets in the coming years.

By editor

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