--- title: "Intel faces deep loss of $7 billion in chip-making unit" description: "Intel said the manufacturing unit had $7 billion in operating losses for 2023, a steeper loss than the $5.2 billion in operating losses the year befor" author: "Mukul Goenka" published: 2024-04-03 updated: 2024-04-03 canonical: https://www.mindstick.com/news/3847/intel-faces-deep-loss-of-7-billion-in-chip-making-unit category: "manufacturing business" tags: ["news", "business"] reading_time: 2 minutes --- # Intel faces deep loss of $7 billion in chip-making unit *•* [*Intel's business*](https://www.mindstick.com/news/3065/intel-spends-33-billion-in-germany-in-landmark-expansion) *recorded a $7 billion loss this year compared to $5.2 billion the previous year.* *• A loss in revenues by 31% to $18.9 billion in 2023 down from $27.49 billion in revenue.* *• The results show that Intel has a hard [competition](https://www.mindstick.com/articles/23460/5-ways-you-can-use-competition-to-your-benefit) against the corporation leaders, such as TSMC.* On Tuesday, Intel (INTC.O) made a very huge revelation, where it showed a very big operating loss within its operating section. And so it is losing its technological lead against TSMC. After the internal review, performed on the disclosed documents filed with SEC in the U.S., Intel got a big **$7 billion operating loss** in its chip manufacturing unit in 2023 and the $5.2 billion of the previous year. ## Revenue Issue and Client Response The bad figures were made worse by a huge revenue decline, as the unit earned $18.9 billion in 2023 against $27.49 billion in the previous year, representing a **31% decline**. The release of the revised guidance by Intel generated a 4.3% decline in the company stock, which reflects the growing concerns about its stand in the highly [competitive](https://www.mindstick.com/blog/43436/benefits-of-referring-to-hc-verma-book-for-competitive-exams) [semiconductor](https://www.mindstick.com/articles/333879/manufacturing-of-chips-in-the-semiconductor-market) markets. While briefing the investors at Intel, the company's Chief [Executive Officer](https://answers.mindstick.com/qa/38479/name-the-media-professional-who-has-been-appointed-by-the-board-of-control-for-cricket-in-india-bcci-as-its-first-chief-executive-officer) Pat Gelsinger expressed his opinion that under his [leadership](https://answers.mindstick.com/qa/39297/who-has-been-honored-with-the-2018-ibrahim-prize-for-achievement-in-african-leadership) they will only become [profitable](https://www.mindstick.com/articles/13077/5-e-commerce-trends-you-need-to-know-for-a-profitable-2018) in 2024 when the chip maker's business generation segment is worst. Gelsinger proposed a plan to attain the [operational](https://answers.mindstick.com/qa/94144/how-many-days-was-chandrayaan-1-operational) department approximately by the 2027 year. He believed that the chip business’s failure was due to the wrong decisions of the past, including the avoidance of ASML’s **extreme** **ultraviolet (EUV) machines**, which would otherwise have maximized the [cost efficiency](https://www.mindstick.com/articles/337676/how-to-leverage-cloud-computing-for-business-growth-and-cost-efficiency). ## Taking a Strategic Turn and Future Promise As a measure of reprisal, Intel has begun outsourcing the production of approximately 30% of the [total chip at manufacturing firms](https://mindstick.com/news/3619/dozens-of-pc-makers-using-intel-s-ai-chip-what-it-is-and-how-it-is-important) in the market, particularly TSMC. On the contrary, the company tends to decrease this dependency on third-party suppliers to around 20% while it (i.e., the company) builds robust manufacturing facilities. With the use of EUV tools, Intel has taken a significant step towards price and performance competition, indicating a renewed emphasis on efficiency and innovation. --- Original Source: https://www.mindstick.com/news/3847/intel-faces-deep-loss-of-7-billion-in-chip-making-unit Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.