Intel has a problem? We're talking about a loss of $7 billion
Analysis of the financial results of the American giant may lead to seemingly uninteresting conclusions. In fact, Intel's losses are very good news.
Intel is a company that probably every Telepolis reader knows, even those who do not follow the world of new technologies on a daily basis. Their processors and graphics systems can be found in most desktop computers, laptops and servers on the market. Suffice it to say that as many as 68% of players choose CPU for Blue.
Intel currently outsources 30% of its production to TSMC
However, Americans deal not only with processors and graphics cards. The production of semiconductors is also an important element of their business. It so happens that the Blues have re-published their financial results for recent years. According to them Intel's foundry business lost $7 billion last year.
Although it looks tragic at first glance, it is in fact, Americans have little reason to complain. The “loss” concerned investments in new EUV production machines from ASML and production plants that will allow for increasing processing capacity and offering the most modern lithography.
Starting in Q1 2025, Intel will adopt a new operating model that will establish a relationship between Intel Foundry and Intel Products. As a result, the results of both units will be reported separately. The company has also restated the results for the last few years in accordance with the new reporting structure, and this is what we rely on today.
The 2023 results reported in a new way show that all Intel groups are profitablepowered by consumer solutions segment (CCG), which achieved as much as USD 9.5 billion in profit.
However, it is worth noting that Intel currently outsources 30% of its production to TSMC. Americans plan to limit it to the standard 20%. New FABs in Arizona and Ohio (USA), which will start operating by 2026, will help with this. The Blues are also getting ready to start construction near Magdeburg (Germany).
