The chip manufacturer Intel had an operating loss of $7 billion in 2023, which is almost $2 billion more than the previous year.
Intel made an operating loss of $7 billion in the 2023 financial year, which represents an increase of almost $2 billion compared to the loss in 2022. According to the company, these operating losses are the result of wrong choices from the past, but hopes ASML’s investment in extreme ultraviolet machines (EUV) to break even in 2027.
Wrong choices
CEO Pat Gelsinger said during a presentation to investors that 2024 would be the year of the worst operating losses for the company’s chipmaking business and that it expects to break even operationally around 2027, Reuters reports. The loss is said to be the result of Intel’s past mistakes, such as outsourcing 30 percent of all its chip production to third-party chip manufacturers, such as TSMC, which is now a major competitor to Intel.
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Intel is currently investing in the use of extreme ultraviolet (EUV) machines from Dutch company ASML, something the company says it should have done sooner. The prices of these machines can reach up to 150 million dollars, but in the long term they are more cost-effective compared to other tools. The Intel CEO expects the cost-effectiveness of those tools will help the company break even by 2027. The company brought in $18.9 billion in revenue in 2023, although that number is down 31 percent from the previous year.
