According to a document submitted by Intel to the US Securities and Exchange Commission on the 2nd, Intel's chip foundry business incurred an operating loss of $7 billion in 2023, approximately $1.8 billion more than its 2022 loss.
The document also shows that Intel's chip foundry business generated revenue of $18.9 billion last year, a 31% decrease from approximately $27.5 billion in 2022.
Intel CEO Pat Gelsinger said in a speech to investors that 2024 will be the year with the worst operating profit for Intel's chip manufacturing business. He expects that this business will achieve a balance of income and expenditure by around 2027.
Gelsinger said that the chip foundry business has been dragged down by multiple bad decisions, including opposition to the use of extremely ultraviolet (EUV) lithography machines produced by Dutch company Asma a year ago. Although these machines are priced at over $150 million per unit, they are still considered the most cost-effective chip manufacturing tools.
Intel has now used EUV lithography machines, and more and more chips it manufactures will use this tool in the future.
Since taking the helm three years ago, Intel has been showcasing itself as a contract manufacturing company, manufacturing chips designed by other companies and regaining a foothold in the high-end semiconductor manufacturing field. The rise of artificial intelligence generated content (AIGC) has significantly increased the demand for such chips.
Reuters reported that Intel plans to spend $100 billion to build or expand chip factories in four states in the United States. This company will also calculate the performance of its product department and contract manufacturing department separately.
Intel and Microsoft announced in February that they will contract high-end chips for Microsoft.