Intel’s Chip-Making Unit Posts $7 Billion Operating Loss

Intel’s Chip-Making Unit , Posts $7 Billion Operating Loss.<br />On April 2, Intel disclosed that its chip manufacturing unit endured "$7 billion in operating losses for 2023," Reuters reports.<br />The year before, the unit had <br />operating losses of $5.2 billion.<br />Revenue for 2023 was $18.9 billion, <br />a 31% decline from the prior year.<br />Intel shares dropped 4.3% after the disclosure.<br />Chief Executive Pat Gelsinger <br />told investors that this year would be the worst for Intel's chipmaking business.<br />Gelsinger expects the company "to break even on <br />an operating basis by about 2027," Reuters reports. .<br />He also said that the foundry business was affected by bad decisions such as not utilizing extreme ultraviolent (EUV) machines a year ago. .<br />Intel has since adopted the use of <br />EUV tools which will increase production.<br />In the post EUV era, we see that we're <br />very competitive now on price, <br />performance (and) back to leadership, Chief Executive Pat Gelsinger, via Reuters.<br />And in the pre-EUV era we carried a lot <br />of costs and (were) uncompetitive, Chief Executive Pat Gelsinger, via Reuters