Intel shares fell more than 4% after the company revealed that its foundry business recorded an operating loss of $7 billion in 2023 on sales of $18.9 billion. This is a wider loss than the $5.2 billion Intel reported in its foundry business in 2022 on $25.7 billion in sales.
Intel has been pitching investors under CEO Patrick Gelsinger on a plan where it would continue to make its own processors, but would also start an external foundry business to make chips for other companies. Intel’s role as one of the only American companies doing cutting-edge semiconductor manufacturing on American soil was a big reason why it secured nearly $20 billion in CHIPS Act funding last month.
Intel said on Tuesday that it expected its foundry’s losses to peak in 2024 and eventually break even “midway” between this quarter and the end of 2030. Intel previously said that Microsoft would use its foundry services and that it has $15 billion of revenue for the foundry already booked.
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