Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Intel’s manufacturing-focused Intel Foundry segment reported a $6.955 billion operating loss in fiscal 2023—about $7 billion—on $18.9 billion in revenue. That was not a $7 billion net loss for Intel Corporation: Intel reported $1.689 billion in net income attributable to Intel for the year. Intel disclosed the recast segment figures on April 2, 2024, for the fiscal year ended December 30, 2023.
What exactly lost $7 billion?
The figure refers to Intel Foundry, not the entire company. Intel Foundry covers manufacturing, process-technology development, supply chain, foundry services, and assembly and test. Its revenue includes services provided to Intel’s own product groups as well as sales to outside customers.
As an Amazon Associate I earn from qualifying purchases.
Intel Products—its client computing, data center and AI, and network and edge businesses—was reported separately. Intel Foundry Services, the external foundry operation, became part of the broader Intel Foundry segment under the new reporting structure. The segment’s 2023 operating loss therefore should not be described simply as Intel Corporation losing $7 billion.
Recommended Free Tools
Intel Foundry’s 2023 results
Intel’s April 2024 filing reported the following segment figures. Revenue and operating loss are reported for fiscal years ended December 30, 2023, and December 31, 2022, respectively. Figures are rounded where indicated.
#1 Best Overall
- Get ultra-efficient with Intel Core Ultra desktop processors that improve both performance and efficiency so your PC can run cooler, quieter, and quicker.
- Core and Threads 24 cores (8 P-cores plus 16 E-cores) and 24 threads. Integrated Intel Graphics included
- Performance Hybrid Architecture Integrates two core microarchitectures, prioritizing and distributing workloads to optimize performance
- Performance Unlocked Up to 5.7 GHz unlocked. 40MB Cache
- Compatibility Compatible with Intel 800 series chipset-based motherboards
| Metric | 2023 | 2022 | Change |
|---|---|---|---|
| Intel Foundry revenue | $18.9 billion | $27.49 billion | Down about $8.6 billion, or 31% |
| Internal revenue | $18.0 billion | About $27.1 billion | Down about $9.1 billion |
| External revenue | $953 million | $474 million | Up $479 million |
| Operating loss | $6.955 billion | $5.169 billion | Loss widened about $1.786 billion |
In 2023, outside customers accounted for a small share of Intel Foundry’s revenue: $953 million, versus $18.0 billion in revenue from Intel’s own businesses. The $18.9 billion total was not $18.9 billion of contract-manufacturing sales to third parties.
For comparison, Intel Corporation reported $54.228 billion in consolidated revenue, $93 million in operating income, and $1.689 billion in net income attributable to Intel for 2023. These company-wide measures are different from Intel Foundry’s segment operating loss. (Intel’s recast segment results and 2023 consolidated figures)
Why did the loss widen?
Intel’s reconciliation of the year-over-year change points first to weaker internal business. Lower internal revenue reduced product profit by $2.1 billion. Higher excess-capacity charges added $411 million of unfavorable impact, and higher inventory-reserve charges added $284 million. Lower product-ramp costs, higher external packaging revenue, and lower operating expenses partly offset those pressures.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsRank #2
- Game without compromise. Play harder and work smarter with Intel Core 14th Gen processors
- 24 cores (8 P-cores plus 16 E-cores) and 32 threads. Integrated Intel UHD Graphics 770 included
- Leading max clock speed of up to 6.0 GHz gives you smoother game play, higher frame rates, and rapid responsiveness
- Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
- DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games
Less work for Intel’s factories
Internal revenue fell by about $9.1 billion as Intel Products purchased fewer manufacturing services from Intel Foundry. Intel’s product businesses faced weaker PC, data-center, and networking demand and customer inventory reductions during 2023. When fewer wafers move through factories, revenue can fall faster than costs: fabs have large fixed expenses and cannot be scaled down as easily as a software business.
Excess capacity and inventory charges
Intel specifically identified increased excess-capacity and inventory-reserve charges as unfavorable factors. Capacity is expensive even when it is underused, while inventory reserves reflect accounting adjustments to inventory values. Neither item should be confused with a single cash payment of the same amount.
Technology transition and investment
Intel was trying to regain manufacturing competitiveness after process delays while investing in new and expanded factories, equipment, process development, and packaging. Reuters reported that CEO Pat Gelsinger linked some of the burden to past process and equipment choices, including delayed adoption of extreme-ultraviolet lithography; that is attributed context, not Intel’s quantified breakdown of the segment loss. Reuters also described a plan involving roughly $100 billion in U.S. factory construction and expansion. Such strategic investment is distinct from the operating loss recognized in a given year. (Reuters report on Intel’s foundry results and investment plans)
Rank #3
- Intel Core i7 3.60 GHz processor offers more cache space and the hyper-threading architecture delivers high performance for demanding applications with better onboard graphics and faster turbo boost
- The Socket LGA-1700 socket allows processor to be placed on the PCB without soldering
- 11 MB L2 and 25 MB L3 cache offers supreme performance for computation intensive apps
- Intel 7 Architecture enables improved performance per watt and micro architecture makes it power-efficient
Why the loss was newly visible
Intel began using an internal foundry model in the first quarter of 2024 and disclosed the segment results separately on April 2, 2024. Under that model, Intel Foundry is treated as a manufacturing supplier and Intel Products as a customer. Intel retrospectively recast 2021–2023 segment data to reflect the new structure, but said the change did not alter Intel’s consolidated financial statements.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →The model changes where revenue and costs appear within Intel. Intel records internal sales at prices intended to approximate market pricing, and assigns technology-development and manufacturing costs to Intel Foundry that had historically been allocated to product businesses. That makes the segment result useful for examining manufacturing economics, but it is not identical to the accounts of a separately incorporated foundry serving only external customers. The underlying manufacturing costs did not suddenly begin in 2023. (Intel’s filing on the reporting model and recast results)
Does the operating loss mean Intel spent $7 billion in cash?
No. The $6.955 billion is an operating-segment accounting loss, not a measure of cash paid out or of the change in Intel’s cash balance. Segment costs include manufacturing and technology-development expenses, depreciation, capacity charges, inventory reserves, and allocated expenses. Intel said most of its consolidated depreciation expense in 2021–2023 was incurred by Intel Foundry.
Rank #4
- Next‑Gen Platform Support: Compatible with Intel 800 Series Chipset‑based motherboards with LGA1851 Socket enabling PCIe 5.0/4.0 and high‑speed DDR5 memory (up to 7200 MT/s).
- High‑Performance Core Configuration: Features up to 24 cores (8 P‑cores + 16 E‑cores) for demanding gaming and creator
- Ultra‑Fast Boost Clocks: Reaches up to 5.5 GHz max turbo frequency for top‑tier responsiveness and performance
- Built for Enthusiasts: Unlocked for performance tuning when paired with Intel Z‑series chipsets, making it ideal for overclockers and power users.
- Robust Power & Thermal Design: Engineered with 125W base power and 250W max turbo power to sustain high‑intensity
Depreciation allocates the cost of long-lived assets such as factories and equipment over time; it is not itself a current-period cash payment. Factory investment can require substantial cash, but establishing how much cash the segment consumed requires a separate cash-flow analysis. The operating-loss figure alone cannot supply that number.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does the result say about Intel’s foundry strategy?
The result shows that, under Intel’s new segment accounting and assigned revenue structure, Intel Foundry’s operating costs exceeded its revenue in 2023. It does not prove that every factory or process node was unprofitable, that the manufacturing capability had no strategic value, or that Intel could close it without affecting its product businesses.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Intel was seeking outside customers while relying overwhelmingly on internal demand. In 2023, external foundry and assembly-and-test revenue was $953 million, compared with $18.0 billion of internal revenue. Intel identified TSMC, Samsung, GlobalFoundries, UMC, and SMIC as foundry competitors, with TSMC and Samsung its principal competitors in advanced process technology. The companies’ results should not be treated as directly comparable without accounting for their different business and reporting structures.
Intel has described its ambition as a broader “systems foundry” offering, encompassing process technology, advanced packaging, design services, software, and ecosystem support. That is Intel’s strategic positioning; the 2023 figures show the scale of the challenge in building external business alongside the manufacturing operation that serves Intel’s own products. (Intel’s segment definitions and competitor discussion)
What was Intel’s recovery target?
When Intel announced the recast results in April 2024, it said 2024 was expected to be the worst year for Intel Foundry operating losses and projected operating break-even around 2027. That was management guidance, not an achieved result or guarantee. Intel’s stated path depended on process execution, more competitive manufacturing, higher factory utilization, external customers, and advanced packaging. (Intel’s April 2, 2024 foundry financial framework)
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
