Intel’s Chip-Making Unit , Posts $7 Billion Operating Loss.
On April 2, Intel disclosed that its chip manufacturing unit endured "$7 billion in operating losses for 2023," Reuters reports.
The year before, the unit had operating losses of $5.2 billion.
Revenue for 2023 was $18.9 billion, a 31% decline from the prior year.
Intel shares dropped 4.3% after the disclosure.
Chief Executive Pat Gelsinger told investors that this year would be the worst for Intel's chipmaking business.
Gelsinger expects the company "to break even on an operating basis by about 2027," Reuters reports.
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He also said that the foundry business was affected by bad decisions such as not utilizing extreme ultraviolent (EUV) machines a year ago.
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Intel has since adopted the use of EUV tools which will increase production.
In the post EUV era, we see that we're very competitive now on price, performance (and) back to leadership, Chief Executive Pat Gelsinger, via Reuters.
And in the pre-EUV era we carried a lot of costs and (were) uncompetitive, Chief Executive Pat Gelsinger, via Reuters
