"Intel's Foundry Business: Navigating Losses and Turnaround Plans"

Intel's shares dropped nearly 7% as the company's foundry business reported operating losses of $7 billion in 2023, highlighting the significant gap in profitability compared to rival TSMC. The U.S. chipmaker has been investing billions to regain its position as a leading chipmaker, but faces substantial headwinds. Intel plans to spend $100 billion on plants in the U.S., aiming to break even in its contract chip-making business by 2027. However, it expects the foundry business to have a gross margin of about 40% by 2030, trailing TSMC's 53% margin.