Intel Corporation recently announced a loss of $7 billion in 2023 in its foundry business, a major blow to the US chipmaker as it strives to regain its leadership position in the technology industry after losing lost to Taiwanese semiconductor manufacturer TSMC.
The loss equated to a 34% increase over the previous year. Intel’s revenue will reach 18.9 billion USD in 2023, down 31% from 27.49 billion USD in the previous year.
Immediately after the documents were filed with the US Securities and Exchange Commission (SEC), Intel shares fell 4.3%.
Commenting on these business results, CEO Pat Gelsinger said that 2024 will be the worst loss-making year for the company’s chip manufacturing business and is expected to reach a break-even point of about year 2027.
Intel CEO Pat Gelsinger speaks as he introduces silicon wafers during an event called AI Everywhere in New York, Thursday, December 14, 2023.
He added that the loss was not a complete surprise. Gelsinger said these latest numbers are partly the result of Intel’s past mistakes in handling its foundry business, which forced the chipmaker to outsource about 30% of its total production. its wafers (semiconductor disks) to other foundries, including TSMC – one of Intel’s biggest competitors today.
Currently, Intel has invested in using extreme ultraviolet (EUV) machines from the Dutch company ASML, while previously they decided not to take this measure. Mr. Gelsinger hopes the cost-effectiveness of those tools will help Intel break even by 2027. ASML also announced on its website that its technology helps scale up computer chip production. becomes more affordable for chip foundries like Intel.
In total, Intel plans to spend about $100 billion to build or expand its chip foundries in four states. They will also receive up to $8.5 billion in funding from the US government as part of the new CHIPS Act.
For everything to go according to plan, Intel will need to convince companies to use its chip manufacturing services. Microsoft recently signed on as a foundry customer, but it’s unclear how many more Intel will need to break even as planned in the next few years.
US President Joe Biden tours the Intel Ocotillo Facility in Chandler, Arizona, US, March 20, 2024.
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In addition, Intel also revealed to investors that it will begin reporting its manufacturing results as an independent unit. The company has invested heavily to catch up with its main chipmaking rivals such as TSMC and Samsung Electronics Co.
In Vietnam, Intel began entering our country with a chip manufacturing and testing factory in Ho Chi Minh City Hi-Tech Park. After an additional investment of 475 million USD in early 2021, to date, the Group’s total investment capital in Vietnam is 1.5 billion USD.
Intel Products Vietnam is one of 10 Intel manufacturing locations globally. Since 2010, this Group has exported 85 billion USD of products made in Vietnam to the world. In 2023 alone, Intel’s total export turnover is estimated to reach 10 – 11 billion USD.
In November 2023, in response to the news that Intel was postponing its investment plan in Vietnam, the media representative of Intel Products Vietnam refused to comment, and only said “Vietnam is an important part of manufacturing activities.” Intel’s global… Intel is pleased to support the development of the large technology ecosystem and Vietnamese workforce and looks forward to continuing to do this in the future.”
Currently, in addition to Intel, other multinational corporations are also pouring capital into Vietnam’s semiconductor industry, including Samsung, Qualcomm, Texas Instruments, SK Hynix, Hayward Quartz Technology, Synopsys and NXP Semiconductors.
