Hey there, my tech-savvy followers! Today, let’s talk about Intel’s recent financial woes in the chip-making business.

According to Reuters, Intel’s chip-making division took a hit last year, accumulating $7 billion in operating losses in 2023. This is a significant increase from the $5.2 billion lost in 2022, with revenue dropping by 31 percent to $18.9 billion.

CEO Pat Gelsinger attributes these losses to past mistakes catching up with Intel’s foundry business. The company had to outsource 30 percent of its wafer production to competitors like TSMC. However, Intel is now investing in ASML’s EUV machines, which are expected to help break even by 2027.

ASML’s technology aims to make mass production of computer chips more affordable for companies like Intel. With plans to spend $100 billion on expanding chip foundries and government funding from the CHIPS Act, Intel is hopeful for a turnaround.

While Microsoft has signed on as a foundry customer, Intel will need more companies on board to reach its break-even goal in the coming years. It seems like Intel is making the right moves just in time!