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Intel will be keen to forget 2024 despite its products selling well because its foundries still keep on swallowing money

pcgamer.com

You'd be forgiven for thinking that 2024 was a year that Intel would prefer to just forget about. Raptor Lake chips self-destructing, Arrow Lake disappointing, and Pat Gelsinger getting the boot (sorry, retiring) were just some of the low points from last year.

However, it wasn't all gloom and doom as it turns out that Intel's products all generated more revenue than the previous year, despite making a substantial $19 billion loss.

So how did Intel manage to do well and poorly at the same time? In the case of the latter, the 2024 financial year statement shows the culprits to be its foundry service (Intel's chip-making plants) and something called intersegment eliminations.

I'm certainly no financial expert but as I understand it, that refers to money being transferred between different segments of a business and in Intel's case, it was a pretty steep $17 billion in transferred revenue.

The real money loser was Intel Foundry with a net loss of $13.4 billion off a revenue of $17.5 billion. It's important to note here that Intel has been spending a lot of cash gearing up its fabrication and packing plants around the world, especially those that will be using its 18A process node, the very thing that Gelsinger "bet the whole company on".

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