INTC - Intel Faces $7B Losses In Foundry Business Aims For Break-Even By 2027 | Benzinga
Intel Corporation (NASDAQ:INTC) has disclosed a significant increase in operating losses for its foundry business, a development that has caused a dip in the company’s shares.
What Happened: Intel revealed on Tuesday that its manufacturing unit suffered $7 billion in operating losses for 2023. This marks a substantial increase from the $5.2 billion loss in the previous year. The unit’s revenue for 2023 was $18.9 billion, a 31% drop from the $27.49 billion recorded the year before, reported Reuters.
Intel’s shares fell by 4.3% after the company filed these documents with the U.S. Securities and Exchange Commission (SEC).
During an investor presentation, CEO Pat Gelsinger acknowledged that 2024 would be the year of the worst operating losses for the company’s chipmaking business. He expressed optimism about breaking even on an operating basis by approximately 2027.
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Gelsinger attributed the foundry business’s struggles to poor decisions, such as the refusal to use extreme ultraviolet (EUV) machines from Dutch firm ...