$Intel (INTC.US)$ fell some 7% Wednesday after the company disclosed that its foundry business recorded an operating loss of $7 billion last year.
INTC sank 7.1% to trade at $40.82 shortly before 1:15 p.m. ET after the chip giant reported after the bell Tuesday a new financial reporting structure that breaks out results by segment.
Intel will now report individual results for its Client Computing Group, Data Center and AI, Network and Edge, Intel Foundry, Altera, Mobileye and "Other" segments.
Markets took particular note of the fact that the company's closely watched foundry business had an operating loss of $7 billion in 2023 vs. operating losses of $5.2 billion in 2022 and $5.1 billion in 2021.
Intel also said its foundry business generated total revenue of $18.9 billion in 2023, down from $27.5 billion in 2022.
Intel said in the press release that foundry operating losses are expected to peak in 2024. The company also noted that it aims to achieve break-even operating margins midway between now and the end of 2030 in its foundry business.
"This model is designed to unlock significant cost savings, operational efficiencies and asset value. As it begins to take hold, we expect to accelerate on our path toward achieving our ambition of 60% non-GAAP gross margins and 40% non-GAAP operating margins in 2030," said Dave Zinsner, CFO of Intel.
Intel also announced the appointment of Lorenzo Flores as CFO of Intel Foundry, effective April 8. Intel said Flores possesses nearly 30 years of financial experience in semiconductors and technology, including most recently as the CFO of Xilinx.