Intel, a semiconductor company based in Santa Clara, California, reported higher operating losses for its foundry business in a recent filing with the U.S. Securities and Exchange Commission. The manufacturing unit experienced $7 billion in operating losses for 2023, up from the $5.2 billion losses reported in the previous year. Despite the losses, the unit generated $18.9 billion in revenue for 2023, a significant drop from the $63.05 billion in revenue it had in the year before.
Following this disclosure, Intel’s shares fell by 2%. To address these challenges, Intel has outlined plans to invest $100 billion in building or expanding chip factories across four U.S. states as part of its efforts to turn around its business. The company aims to generate revenue by attracting external companies to use its manufacturing services and improve profitability through this strategy.
To enhance transparency and accountability, Intel has committed to reporting the results of its manufacturing operations as a standalone unit. In recent years, the company has been making substantial investments to close the gap with its primary competitor, Taiwan Semiconductor Manufacturing Co (TSMC). By aligning their strategy with the goal of becoming a leading player in the semiconductor industry, Intel aims to regain its competitive edge and strengthen its position in the market.
The semiconductor industry is highly competitive and constantly evolving, and companies such as Intel must adapt quickly if they want to remain relevant and profitable. With this investment plan announced today, Intel shows that it is determined to turn things around and regain its position atop this fast-paced industry.
