Intel extends losses at chipmaking factories
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The news: Technology multinational Intel has disclosed increasing operating losses for its manufacturing unit, according to a regulatory filing to the US Securities and Exchange Commission.
The numbers: Intel said its manufacturing unit had widened its operating losses in 2023, plunging to USD7 billion ($10.74 billion) from USD5.2 billion in the prior year. The unit recorded revenue of USD18.9 billion for 2023, a 31% decline from USD63.05 billion in 2022.
Intel shares were down 2% on the Nasdaq after the documents were filed.
Last month, Reuters reported that the semiconductor company unveiled plans for a USD100 billion expansion across four US states, including the construction of what company CEO Pat Gelsinger described as "the largest AI chip manufacturing site in the world".
The context: California-based Intel has been investing heavily to transform its business to compete with its chipmaking rival Taiwan Semiconductor Manufacturing Co (TSMC). However, TSMC continues to dominate the market, while Intel Foundry, Intel's new division responsible for its manufacturing operations, experiences further revenue declines.
The sources: SEC filing, Reuters
