Losses of Intel’s semiconductor division reached almost $7 billion – Kommersant

The operating loss of Intel’s semiconductor division at the end of 2023 amounted to $6.96 billion, follows from report company filed with the US Securities and Exchange Commission. Against this background, the company’s stock quotes are declining in over-the-counter trading by more than 4%.

The division’s losses have only been growing in recent years. So, in 2022 they amounted to $5.2 billion, and in 2021 – $5.1 billion. Its revenue also decreased significantly – from $27.5 billion to $18.9 billion. This is the worst figure in three years.

During the presentation of the results, Intel CEO Pat Gelsinger said that the deterioration in the semiconductor division’s financial performance was due to poor management decisions. Among these, Mr. Gelsinger included the refusal to use photolithographic machines with extreme ultraviolet radiation (EUV) from the Dutch company ASML. According to the head of the company, although they are more expensive, they are more cost effective than older equipment. As a result, partly because of this, Intel had to outsource 30% of its wafer manufacturing work to contractors such as Taiwan’s TSMC, Intel’s main semiconductor competitor. Now the company intends to switch to EUV equipment and reduce the volume of outsourced orders to 20%. However, 2024 will be even worse for Intel’s semiconductor business in terms of losses, Mr. Gelsinger warned. The company hopes to reach break-even for the division in 2027.

Kirill Sarkhanyants