2024-04-03 09:46:54
Entered 2024.04.03 18:46 Modified 2024.04.04 01:20 Paper A19
Intel wants to catch Samsung Electronics
Foundry sales decreased by 31%30% of volume outsourced… “The slump will continue”
Last year, sales of the American semiconductor manufacturer Intel (43.94 -1.30%) in the foundry (semiconductor consignment production) division decreased by more than 30% compared to the previous year. Despite the company’s plan to overtake Samsung Electronics and become the No. 2 player in the foundry sector, its slump is expected to continue until this year.
According to the performance report submitted by Intel to the U.S. securities authorities on the 2nd (local time), the company’s foundry division sales last year amounted to $18.9 billion (regarding 25.55 trillion won), a 31.2% decrease from the previous year. During the same period, operating loss increased by 34.6% to $7 billion (approximately 9.46 trillion won).
Intel analyzed that the decrease in sales in the foundry division was due to the fact that it did not use extreme ultraviolet (EUV) equipment from ASML, a Dutch exposure equipment manufacturer. As a result, Intel had to entrust the production of regarding 30% of all wafers to external manufacturers such as TSMC. Intel forecasts that losses in the foundry division will peak this year and reach the break-even point around 2027.
This is the first time that Intel has reported its foundry division performance separately. Starting this year, Intel will announce its performance separately into the product division, which is responsible for semiconductor and design development, and the foundry division, which is responsible for semiconductor production. Previously, it achieved performance in five sectors: client computing, data center and artificial intelligence (AI), network and edge, Mobileye, and foundry services. Intel’s change in performance reporting method reflects the company’s will to surpass Samsung Electronics and become the second largest foundry. Intel announced in a webinar on this day that, based on a new performance report, Intel foundry sales have exceeded Samsung Electronics foundry sales ($20.8 billion in 2022 and $13.3 billion in 2023) for two consecutive years.
However, 95.2% ($18 billion) of Intel’s foundry sales last year came from internal volume. Intel CEO Pat Gelsinger said, “We will become the world’s second largest foundry company (based on external sales) by achieving annual sales of more than $15 billion from external customers by 2030.” Previously, Intel announced that Microsoft (421.44 -0.74%) (MS) plans to use its foundry services and that the foundry order balance reached $15 billion in February. On this day, Intel’s stock price fell more than 4% in over-the-counter trading.
Reporter Kim In-yeop inside@hankyung.com
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