In recent years, there has been intense competition in the chip manufacturing sector, and Intel is one of the key players in this field. However, it appears that the company is facing some challenges, especially in competition with Taiwan-based TSMC. Reports reveal that Intel incurred billions of dollars in losses.
Intel lost $7 billion in chip manufacturing business
According to the information provided, Intel’s chip manufacturing division suffered a loss of $7 billion in 2023, compared to $5.2 billion in 2022, indicating a significant increase in losses. Additionally, the company’s revenue is reported to have decreased.
Intel reportedly generated $18.9 billion in revenue from the chip business in 2023, down from $27.49 billion the previous year, representing a 31% decrease. The CEO of the company, Pat Gelsinger, commented on these figures, stating that he was not surprised by the decline. He attributed it to the company’s past strategic mistakes and its dependence on other companies like TSMC for chip manufacturing by as much as 30%.
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To address these challenges, Intel plans to invest $100 billion to establish chip manufacturing factories in four states in the U.S. and expand existing facilities. Additionally, the U.S. government is set to provide a $8.5 billion fund under the CHIPS Act to alleviate chip shortages and support domestic semiconductor production.
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