According to a Reuters report, in 2023 Intel had to deal with huge losses related to chip production, therefore affecting its Foundry division. In fact, in recent years the American giant has sought the path to independence, even attempting to become a foundry for other semiconductor producers.
However, things don't seem to be going right and further losses are expected for 2024 as well. Intel CEO Pat Gelsinger provided some interesting thoughts.
Wrong choices
According to a Reuters report, Intel's Foundry division in 2023 recorded a deficit of 7 billion, which are added to the 5.2 billion of the previous year. Furthermore, last year, the company's revenues fell by 31%, to settle at 18.9 billion.
For Intel CEO Pat Gelsinger, the reasons must be found in the bad choices made by society: Intel has in fact tried to regain technological leadership from the other major giant in the sector, TSMC.
For the CEO, Intel's biggest mistake was not focusing on extreme ultraviolet machines of the Dutch company Asml, much more convenient than the previous ones for the production of chips. Although expensive, we are talking about around 150 million dollars per unit, these solutions greatly increase efficiency. Recently Intel has come into possession of this technology and has begun the conversion of its plants.
However, to reach a balanced budget, Pat Gelsinger's forecasts take us until 2027. For the moment, 30% of Intel chip production remains in the hands of TSMC, a company that has had to deal with the terrible earthquake in recent days of Taiwan.
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