Whoa! 😱 Intel just dropped some major news. The U.S. chip giant revealed it's facing a massive $7 billion operating loss in its chip-making unit this year. That's even more than last year's $5.2 billion loss. So, what's happening with Intel?
For those not in the know, Intel has been trying to catch up to companies like Taiwan Semiconductor Manufacturing Company (TSMC) in the tech race. They've lost some ground over the years, and now it's starting to show in their finances.
Intel's CEO, Pat Gelsinger, told investors that 2024 might be the toughest year yet for their chipmaking business. But don't count them out just yet! 💪 Gelsinger believes Intel can bounce back and break even by around 2027.
One of the big issues was a decision made last year to skip using extreme ultraviolet (EUV) machines from Dutch company ASML. These machines are pricey (over $150 million each 😳), but they're totally worth it because they make chip production more efficient.
Because of this hiccup, Intel had to outsource about 30% of its wafers to external manufacturers like TSMC. But here's the good news: Intel is now adopting those EUV machines, and they're ramping up production as older equipment gets phased out.
\"In the post-EUV era, we see that we're very competitive now on price, performance, and back to leadership,\" Gelsinger said. Sounds promising, right?
Intel isn't just sitting around. They're planning to invest a whopping $100 billion to build or expand chip factories in four U.S. states. 🙌 Their big plan? To turn things around by getting other companies to use their manufacturing services.
As part of this new strategy, Intel will start reporting its manufacturing operations separately. They've been pouring resources into catching up with the big players like TSMC and Samsung Electronics.
Will Intel make a comeback and reclaim its spot at the top? Only time will tell, but we're definitely keeping an eye on this tech titan! 👀
Reference(s):
Intel discloses $7 billion operating loss for chip-making unit
cgtn.com
