Intel's foundry business showed an increase in losses year-over-year.
This week, Intel (INTC) reported sales numbers for its foundry business, which manufactures semiconductors. While it’s not surprising that the arm once again operated at a loss in 2023, those losses were large enough to put a dent in the company’s stock value.
Intel shares were down today after Intel published its latest operating model for foundry, which included the bigger than expected losses for 2023. It was a loss of $7 billion on $18.9 billion in sales last year, against a loss of $5.2 billion on $27.5 billion in 2022.
Source: Intel
“Intel’s differentiated position as both a world-class semiconductor manufacturer and a fabless technology leader creates significant opportunities to drive long-term sustainable growth across these two complementary businesses,” said Pat Gelsinger, Intel CEO. “Implementing this new model marks a key achievement in our IDM 2.0 transformation as we hone our execution engine, stand up the industry’s first and only systems foundry with geographically diverse leading-edge manufacturing capacity, and advance our mission to bring AI Everywhere.”
Shares of Intel (INTC) saw roughly a four percent drop as a result of the losses at foundry. With the company confident in the division’s future and its importance to the company, we’ll be keeping a close eye on how it continues to impact Intel’s business.
Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_
