• Tue. Apr 23rd, 2024

Intel’s Strategic Shift: From Billion-Dollar Losses to Breaking Even in 2027

BySamantha Nguyen

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

Intel faced significant challenges in its chip-making division in 2023, with the company accumulating $7 billion in operating losses, a substantial increase from the $5.2 billion lost in 2022. Despite generating $18.9 billion in revenue in 2023, this figure was 31 percent lower than the year before, when Intel made $27.49 billion. CEO Pat Gelsinger acknowledged that the losses were not unexpected and attributed them to past mistakes catching up with the company’s foundry business. To address this issue, 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 Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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