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Intel's Foundry Business Reports Decline in Revenue

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Intel,Foundry Business,Revenue Decline

Intel's foundry business experienced a decline in revenue in 2023, resulting in a $7 billion operating loss. CEO Pat Gelsinger anticipates even worse numbers for this year and announces a reorganization to align with competitors. The reorg will involve reporting results from various segments, including Client Computing Group, Data Center and AI, Network and Edge, Intel Foundry, Altera, Mobileye, and Other.

Revenue at Intel's foundry business declined in 2023, leading to a $7 billion operating loss, and CEO Pat Gelsinger says this year could produce even nastier numbers as he revealed a reorg to help the chipmaker behave more like its rivals. The reorg will see Intel report results from the following segments: Client Computing Group (CCG); Data Center and AI (DCAI); Network and Edge (NEX); Intel Foundry; Altera, an Intel Company (formerly Intel's Programmable Solutions Group); Mobileye; and Other.

Foundry is the only standalone segment. CCG, DCAI, and NEX will be counted as"Intel Products," while Altera, Mobileye, and Other will be classified"All Other." This matters because Chipzilla has also decided the Foundry segment"will recognize revenues generated from both external Foundry customers and Intel Products, as well as technology development and product manufacturing costs historically allocated to Intel Product

 

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