Intel reports a $7 billion operating deficit for its chip business.

 Intel reports a $7 billion operating deficit for its chip business.

FILE PHOTO: On November 28, 2023, in Beijing, China, at the inaugural China International Supply Chain Expo (CISCE), a man passes by the Intel emblem at their stand. Florence Lo/File Photo via REUTERS.

In a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday, semiconductor company Intel revealed rising operating losses for its foundry division.

Compared to the $5.2 billion in operating losses the previous year, Intel said that the manufacturing unit's operating losses for 2023 were $7 billion, a more substantial loss. In 2023, the unit's sales was $18.9 billion, a 31% decrease from $63.05 billion in the previous year.

Following the filing of the documents, Intel shares fell 2%.

In four US states, Intel intends to invest $100 billion in the construction or expansion of semiconductor facilities. Convincing outside businesses to use its manufacturing services is a key component of its business turnaround plan.

Intel informed investors that part of that approach included starting to report manufacturing operations' performance as a separate entity. The business has been making significant investments to close the gap with Taiwan Semiconductor Manufacturing Co., its main opponent in the semiconductor industry.