In 2023, Intel’s chip division faced significant challenges, accumulating $7 billion in operating losses, a marked increase from the $5.2 billion lost in 2022. Despite generating revenue of $18.9 billion in 2023, this figure was 31 percent lower than the year before, when Intel earned $27.49 billion.

CEO Pat Gelsinger acknowledged that the losses were not unexpected, attributing them to past mistakes that had caught up with the company’s foundry business. To address this, Intel decided to outsource about 30 percent of its wafer production to other foundries, including key competitor TSMC. However, Intel has now made a strategic investment in using extreme ultraviolet (EUV) machines from ASML, a move that Gelsinger believes will help the company become even by 2027.

ASML’s technology is being touted as making mass production of computer chips more cost-effective for companies like Intel, potentially signaling a positive move for the chipmaker. In support of its goals, Intel plans to invest about $100 billion in building or expanding its chip foundries in four states, with up to $8.5 billion in US government funding under the new CHIPS Act.

Despite recent successes with Microsoft becoming a foundry customer for Intel, there is uncertainty about how many more companies will need to be involved for Intel to reach its break-even goal in the coming years. Successfully convincing companies to use its chip manufacturing services will be critical to Intel’s future success.

By Samantha Johnson

As a dedicated content writer at, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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