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

Intel’s Chip-Making Division Experiences $7 Billion Loss in 2023, Investing in EUV Machines to Break Even by 2027

In 2023, Intel’s chip-making division experienced a significant increase in operating losses of $7 billion compared to 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 in 2022.

The substantial losses have been attributed to Intel’s past mistakes and their impact on its foundry business. CEO Pat Gelsinger stated that this has led to outsourcing approximately 30 percent of wafer production to competitors like TSMC. However, Intel is now investing heavily in utilizing extreme ultraviolet (EUV) machines from ASML to help break even by 2027.

ASML’s technology is believed to 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.

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.

Intel’s chip-making division has been experiencing significant losses for several years now, with operating losses reaching $7 billion in 2023 compared to $5.2 billion in 2022. The company generated $18.9 billion in revenue that year but still represents a decrease of 31 percent from the previous year’s revenue of $

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