When Will IFS Losses Peak, Since Admittedly, The Peak is Yet to Come
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hist78
Well-known member
Intel CEO Pat Gelsinger said 2024 will be the worst of year for Intel Foundry and it will get better afterwards. I think to realize his prediction, Intel WILL make it possible. Because through expense allocation Intel can make Intel Foundry look better.
To me it's the same attitude but different CEOs and different tricks on how to make Intel's financial statement more attractive or less ugly.
fansink
Active member
I did read what Pat said, which was that he expects/anticipates/hopes the peak is this year. I'm after a little more depth from those (here) that may be more closely keeping their eye on the peas.
tooLongInEDA
Moderator
Reading the latest comments on one of the other current IFS threads, the single biggest issue seems to be that Intel's effective fab utilisation (% of possible wafer starts that result in production silicon) appears to be below 50%. If that's bottomed (Pat seems to claim it has), then it seems a reasonable bet that the only way is up. The biggest single factor in this is likely how much Intel can claw back in house from their outsurcing to TSMC and whether they can stick to the plan for this or find the cost of switching too high.
Intel's new disclose says followings.
(million dollars)
(2,100) Lower product profit driven by lower internal revenue
(411) Higher period charges related to excess capacity
when their products lost revenue 9,371 (from 57,038 to 47,667), foundry lost 2511. So without any further cost reduction, Intel needs to boost internal products revenue about ~20,000 to remove foundry deficit. But now their CCG products consists of 50% of TSMC silicon so it's no wonder 2024 will be worst year for foundry. But 2025 can be real worst year if 18A doesn't work...
(million dollars)
(2,100) Lower product profit driven by lower internal revenue
(411) Higher period charges related to excess capacity
when their products lost revenue 9,371 (from 57,038 to 47,667), foundry lost 2511. So without any further cost reduction, Intel needs to boost internal products revenue about ~20,000 to remove foundry deficit. But now their CCG products consists of 50% of TSMC silicon so it's no wonder 2024 will be worst year for foundry. But 2025 can be real worst year if 18A doesn't work...