Chip-making Unit of Intel Reveals $7 Billion Operating Loss

Intel’s Semiconductor Losses Continue to Mount as Company Pursues New Manufacturing Facilities

Intel, a semiconductor company based in Santa Clara, California, reported increasing operating losses for its foundry business in a recent filing with the U.S. Securities and Exchange Commission. The manufacturing unit experienced $7 billion in operating losses for 2023, which was higher than the $5.2 billion losses reported in the previous year. Despite the losses, the unit generated $18.9 billion in revenue for 2023, a significant drop from the $63.05 billion in revenue the year before.

The disclosure of Intel’s operating losses led to a 2% decline in its shares. In response to these challenges, Intel has outlined plans to invest $100 billion in building or expanding chip factories in four U.S. states as part of its efforts to turnaround its business. To enhance transparency and accountability, Intel has committed to reporting the results of its manufacturing operations as a standalone unit.

Intel’s strategy relies on attracting external companies to use its manufacturing services as a means of generating revenue and improving profitability. By aligning its strategy with the goal of becoming a leading player in the semiconductor industry, Intel aims to regain its competitive edge and strengthen its position in the market.

In recent years, Taiwan Semiconductor Manufacturing Co., Intel’s primary competitor, has been gaining ground on it by closing the gap between them through substantial investments made by it

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