Intel’s (INTC) stock is down 5% after the microchip and semiconductor company reported a $7 billion U.S. loss in its manufacturing or foundry business.
Intel said its foundry business had an operating loss of $7 billion U.S. in 2023 on sales of $18.90 billion U.S.
The latest numbers from Intel show that the loss grew from $5.2 billion U.S. in 2022 on $27.50 billion U.S. in sales.
This is the first time that Intel has disclosed revenue for its foundry business separate from its other operations.
Intel is undertaking a multi-year plan to pivot away from just designing microchips to also manufacturing them both for itself and other chipmakers such as Nvidia (NVDA).
Currently, about three quarters (75%) of all microchips and semiconductors in the world are manufactured at foundries run by one company, Taiwan Semiconductor Manufacturing Co. (TSM).
Intel’s efforts to manufacture semiconductors in the U.S. has helped it to secure nearly $20 billion U.S. in federal funding to build chip plants in states such as Ohio.
In reporting its latest loss, Intel said that it expects the foundry business’ losses to peak later this year and for the business unit to break even by the end of 2030.
The company previously said that has $15 billion U.S. of revenue for its foundry business already booked.
Prior to today (April 3), Intel’s stock had declined 8% this year to trade at $43.94 U.S. per share.
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