In 2023, Intel’s chip division lost $7 billion. That is about two billion more than a year earlier.
For the year 2023, Intel had $ 18.9 billion in revenue, about 31% less than in 2022, the Reuters news agency writes. However, this is no surprise for CEO Pat Gelsinger. Gelsinger says the losses are a result of past decisions, including to outsource production to other foundries such as TSMC.
A few years ago, Gelsinger developed an ambitious plan to put Intel back on the map. This included its own Foundry service. Intel will use this service to make chips for others (including Microsoft), in direct competition with, for example, TSMC. Gelsinger also decided to invest in EUV machines (extreme ultraviolet), the latest types of chip machines from the Dutch ASML. The CEO hopes to be profitable again with his chip division by 2027.
In total, Intel plans to spend around $100 billion to build and expand its chip factories. The company is partly counting on financing from the American government. That would already contribute about $8.5 billion.
