Published , by Donovan Erskine
Published , by Donovan Erskine
This week, Intel (INTC) reported sales numbers for its foundry business, which manufactures semiconductors. While it’s not surprising that the arm once again operated at a loss in 2023, those losses were large enough to put a dent in the company’s stock value.
Intel shares were down today after Intel published its latest operating model for foundry, which included the bigger than expected losses for 2023. It was a loss of $7 billion on $18.9 billion in sales last year, against a loss of $5.2 billion on $27.5 billion in 2022.
“Intel’s differentiated position as both a world-class semiconductor manufacturer and a fabless technology leader creates significant opportunities to drive long-term sustainable growth across these two complementary businesses,” said Pat Gelsinger, Intel CEO. “Implementing this new model marks a key achievement in our IDM 2.0 transformation as we hone our execution engine, stand up the industry’s first and only systems foundry with geographically diverse leading-edge manufacturing capacity, and advance our mission to bring AI Everywhere.”
Shares of Intel (INTC) saw roughly a four percent drop as a result of the losses at foundry. With the company confident in the division’s future and its importance to the company, we’ll be keeping a close eye on how it continues to impact Intel’s business.