The operating loss of Intel’s chip manufacturing division in 2023 was announced as 7 billion dollars. Intel CEO Pat Gelsinger says this is not unexpected.
Intel, one of the world’s largest chipmakers, has been in the spotlight recently with its focus on artificial intelligence chips. However, according to the information shared, the company lost billions of dollars in the chip production department last year.
According to Reuters, Intel’s chip manufacturing division had an operating loss of $7 billion in 2023. This is a huge increase compared to the $5.2 billion the company lost in 2022, and although it generated $18.9 billion in revenue in 2023, this figure was down 31 percent compared to the $27.49 billion it generated the previous year.
According to Intel CEO Pat Gelsinger‘s statements to investors, the total loss is not unexpected. Gelsinger says these results are partly the result of mistakes Intel has made in the past, which led to outsourcing about 30 percent of Intel’s entire wafer production to other manufacturers such as TSMC, now one of the company’s biggest competitors.
Currently, however, Intel is investing in machines from the Dutch firm ASML, which it had previously decided not to use. Gelsinger believes that the cost-effectiveness of these machines will enable Intel to turn the situation around by 2027. ASML also states on its website that its technology makes mass production of computer chips more affordable for chip foundries like Intel.
In total, Intel plans to spend about $100 billion to build chip manufacturing centers in four states and expand existing ones. The company will also reportedly receive up to $8.5 billion in funding from the US government as part of the new CHIPS Act.
There is a serious market for chip production in the world. You can take a look at the companies that have a say in this field, which we have compiled in detail before.
