Home World News Intel’s wafer foundry operating losses widened last year as it lost US$7 billion and fell 4% after the bell.

Intel’s wafer foundry operating losses widened last year as it lost US$7 billion and fell 4% after the bell.

Intel’s wafer foundry operating losses widened last year as it lost US$7 billion and fell 4% after the bell.

Intel revealed that operating losses at its foundry business have worsened and that the business may not break even for several years, underscoring the challenges facing Intel’s expensive expansion plans.

Documents submitted by Intel to the US Securities and Exchange Commission on the 2nd showed that Intel Foundry, the new division responsible for manufacturing business, will have revenue of US$18.9 billion in 2023, down from US$27.5 billion last year. The business’s operating losses increased from $5.2 billion to $7 billion in 2022.

Intel’s stock price fell nearly 4% to $42.29 per share in after-hours trading on the 2nd, continuing its decline of 1.3% at the end of the 2nd, and the cumulative decline this year has reached 13%.

Intel CEO Henry KissingerinvestPeople at the meeting said that 2024 will be the most serious year of operating losses for Intel Foundry’s wafer foundry business, and it is expected to achieve operating breakeven around 2027. Intel also appointed Lorenzo Flores as chief financial officer of the division.

Kissinger said at the briefing, “We believe that such transparency and accountability are necessary. The necessary change is underway.”

Kissinger also revealed that IntelWaferThe foundry business has been dragged down by poor decision making, including protesting the use of Dutch ASML’s EUV equipment a year ago. Partly as a result of these missteps, Gelsinger said, Intel lost about 30% of its total wafers. % assignedTSMCand other outside contract manufacturers. Intel aims to reduce that number to about 20%.

Intel has now switched to EUV equipment, and as older machines are phased out, EUV will meet more and more production needs.

Kissinger said: “In the post-EUV era, we see that we are now very competitive in terms of price, performance and return on leadership. In the pre-EUV era, we had a very high cost burden and a lack of competitiveness.” Was.

Gelsinger reiterated that Intel will restore its advantages in semiconductor technology by next year, and over time, it will improve the functionality of Intel products and reduce manufacturing costs to win orders from competitors. Kissinger said that this could generate revenue of up to $15 billion by the end of 2030.

Intel said five companies have committed to using the company’s latest 18A process. This technology will be more widely adopted from next year and its pace will increase further after that.

Intel Chief Financial Officer David Zinsner also attended the meeting on the 2nd and accepted analysts’ questions. He acknowledged that there is still much room for improvement, but pointed out that the wafer foundry business has benefited from independence, including in urgent matters. High-cost requests such as processing and testing of wafers have been significantly reduced.

Intel has also won some customers. In February, Intel announced that Microsoft’s internal chip design program would become a customer of Intel’s foundry business. Kissinger also said that the itinerary has been finalized and other clients will be signed, but these companies could not be announced.