Intel's chip division posted an operating loss of $7 billion last year. A year earlier, losses were a dizzying $5.2 billion.
Still, Intel is doing well, generating $18.9 billion in revenue in 2023. Although this is still much worse than in 2022, where this figure reached $27.49 billion. CEO Pat Gelsinger said the results weren't much of a surprise. He explained that this is allegedly the result of mistakes made by the company in recent years, for which they now have to pay.
It turns out that during periods of high demand, Intel redirected up to 30% of all chip production to the factories of its largest competitor, TSMC. Only recently the company invested in special machines from the Dutch company ASML that work with ultraviolet light. It is reported that the profit from these investments will be received only in 2027, and the machines themselves will significantly increase production dynamics.
As part of the new law, the company will receive $8.5 billion in funding from the US government, and also plans to spend $100 billion to expand its factories throughout the US. Now Intel is looking for partners for cooperation, since only in this case it will be able to effectively use the newly acquired tools. It is already known that Microsoft will be one of the first recipients of the services, but this is clearly not enough for the investment to fully pay off.