Meta AI Push Could Add $26 Billion in Revenue by 2027, Wolfe Research Says 
European EV Sales Surge in April 2026 as Tesla and Chinese Automakers Gain Ground 
Samsung Workers Approve Wage Deal, Avoiding Major Strike and Boosting Chip Supply Confidence 
Snowflake Stock Soars 30% After Q1 Earnings Beat and Major AWS AI Partnership 
Synopsys Q2 FY2026 Earnings Beat Driven by AI and Semiconductor Demand 
Dell Raises 2027 Revenue Forecast as AI Server Demand Drives Record Quarterly Results 
HP Q2 2026 Earnings Beat Expectations Despite Memory Chip Pressure 
Costco Q3 Fiscal 2026 Earnings Beat Expectations as Sales and E-Commerce Surge 
Kentucky School District Secures $27 Million in Social Media Addiction Lawsuit Settlements 
Mega IPOs Like SpaceX and OpenAI Could Reshape S&P 500 and Nasdaq 100 Portfolios in 2026 
Blue Origin New Glenn Rocket Explodes During Launch Pad Test, Delaying Space Ambitions 
Nvidia and Microsoft to Launch AI-Powered Windows PCs at Computex 2026 
Samsung to Invest $1.5 Billion in Vietnam Semiconductor Testing Plant by 2027 
DOJ Investigates Group Linked to Reid Hoffman Over E. Jean Carroll Lawsuit Funding 
Xiaomi Shares Drop After Weak Q1 Earnings Amid Rising Smartphone Costs 
Salesforce Q1 FY2027 Earnings Beat Expectations Despite Soft Q2 Revenue Outlook 
Intel revealed significant operating losses in its foundry business last year. The losses marked a setback for the chipmaker's efforts to reclaim a technological advantage lost to Taiwan Semiconductor Manufacturing in recent years.
Operating Losses and Revenue Decline
According to the Inquirer, the manufacturing unit recorded operating losses of $7 billion in 2023, a notable increase from the $5.2 billion loss reported in the previous year. Despite this, the unit's revenue declined to $18.9 billion in 2023, reflecting a 31% drop from $27.49 billion in the preceding year.
Future Projections and Challenges
During a presentation for investors, Intel's Chief Executive Officer, Pat Gelsinger, projected that 2024 would mark the peak of operating losses for the company's chipmaking business. Intel anticipates reaching break-even on an operating basis by around 2027.
Reuters reported that Gelsinger attributed the challenges faced by the foundry business to past decisions, highlighting the avoidance of using extreme ultraviolet (EUV) machines from ASML. Despite the high cost of EUV machines exceeding $150 million, they are more cost-effective than earlier chip manufacturing tools.
Strategic Shifts and Future Investments
In response to previous missteps, Intel has outsourced approximately 30% of its wafer production to external contract manufacturers like TSMC. The company aims to reduce this percentage to around 20%.
Intel's transition to EUV tools is expected to enhance production efficiency, with plans to invest $100 billion in building or expanding chip factories across four U.S. states. The company's revival strategy hinges on attracting external partners to leverage its manufacturing services.
As a pivotal move in this strategy, Intel will begin reporting the outcomes of its manufacturing operations as a separate unit. The company's aggressive investments aim to narrow the gap with industry rivals such as TSMC and Samsung Electronics Co Ltd.
Photo: Intel Newsroom
