Intel’s Losses Soar to $7 Billion in 2023 as Chip-Making Business Falters, Yet CEO Gelsinger Sees Promise for EUV Technology

Last year, Intel’s chipmaking business suffered a $7 billion loss

Intel’s chip-making division incurred operating losses of $7 billion in 2023, a significant increase from the $5.2 billion lost in 2022. Despite generating $18.9 billion in revenue in the same year, this number represents a 31 percent decrease from the $27.49 billion earned the previous year.

Intel CEO Pat Gelsinger attributes these substantial losses to mistakes made by the company’s foundry business catching up with its competitors. In response, Intel outsourced approximately 30 percent of its wafer production to companies like TSMC. However, Gelsinger believes that Intel can break even by investing in utilizing extreme ultraviolet (EUV) machines from ASML, which he believes will make mass production of computer chips more cost-effective for companies like Intel.

To support this initiative, Intel plans to spend around $100 billion on building or expanding chip foundries in four states and will receive up to $8.5 billion in funding from the U.S. government through the CHIPS Act. The CHIPS Act aims to strengthen America’s leadership position in semiconductor manufacturing and research, and it is expected to create thousands of jobs across the country.

In order to achieve its goals, Intel needs to attract more companies to use its chipmaking services. While Microsoft recently became a foundry customer, it remains uncertain how many more partnerships Intel must secure to meet its financial targets in the coming years.

Despite these challenges, Intel remains committed to investing heavily in new technologies and expanding its capabilities as a global leader in semiconductor manufacturing and innovation.

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