Intel’s Intel Foundry Division: A Future of Confidence
According to Bloomberg, the corporation Intel has shown confidence in the future of its Intel Foundry division, which will now be reported as a separate segment in the company’s financial reports. The main focus will be on achieving break-even by 2027, despite losses recorded in the previous year.
Ambitious Plans for Break-Even by 2027
According to the financial report, Intel’s contract business experienced losses of $7 billion in 2023, with profits decreasing from $27.5 to $18.9 billion. However, Intel Foundry has ambitious plans to achieve break-even by 2027.
Key Steps Towards Success
A key step in this direction was separating Intel Foundry from the core business of the corporation and appointing Lorenzo Flores, a former employee of Xilinx, as the chief financial officer. During a meeting with investors, Intel’s CEO Pat Gelsinger explained that the increase in losses was due to the decision to not purchase equipment for EUV lithography. However, the company plans to return to this direction, which, according to him, will make Intel more competitive.
Building Momentum with Third-Party Contracts
Despite initial challenges, Intel has already received significant orders totaling approximately $15 billion from third-party developers.
