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Intel Foundry Charts a Course to Breakeven

Despite early losses, America’s designated chip “champion” aims to be the world’s second-largest foundry by 2030.

Intel fab under construction in Arizona. (Source: Intel Corp.)

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By George Leopold

What’s at stake:
Fresh off receipt of U.S. government funding and tax breaks, Intel Corp. is spearheading the effort to revive American chip manufacturing. Will Intel Foundry’s internal sourcing strategy enable it to achieve a projected breakeven in 2027?

On the day it disclosed steep operating losses for its nascent foundry operations, Intel Corp. dropped the other shoe by unveiling a widely expected strategy that separates its fabless products unit from its fledgling foundry business.

The goal, Intel said, is establishing a “foundry-like relationship” among Intel Foundry, the chipmaker’s existing manufacturing operations, and its “product” business unit. The last is essentially the fabless portion of Intel Corp. that designs chips for data centers, networking and, the company hopes, future AI systems.

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