Intel (NASDAQ:INTC) on Tuesday unveiled its financial strategy and future plans for its foundry business, signaling a significant investment and reorganization within its manufacturing operations, filing with the US SEC showed.
In particular, the chipmaker has adjusted the financial results for its operating segments from 2021 to 2023 to provide clearer insight into its foundry business.
The company forecasts that the Intel Foundry's operational margins will break even sometime between now and 2030, with operating losses expected to reach their highest point in 2024, while targeting 40% adjusted gross margins and 30% adjusted operating margins.
“Intel Foundry currently has an expected lifetime deal value with external customers of more than $15 billion and remains focused on its goal of becoming the world’s second-largest foundry by 2030,” the company stated.
INTC shares fell over 3% in after-hours trading.
For its broader Intel Products segment, the company has set a goal of achieving a 60% non-GAAP gross margin and a 40% adjusted operating gross margin by the end of 2030.
In addition, the company said it plans to invest $100 billion in constructing and expanding chip manufacturing facilities across four U.S. states.
This move is a part of Intel's broader strategy to turn around its business by attracting external clients to its manufacturing services. In line with this plan, Intel announced it would begin reporting its manufacturing operations' financial results as an independent segment.
Furthermore, the chipmaker also announced that Lorenzo Flores has been appointed as the Chief Financial Officer of Intel Foundry, effective April 8, 2024.
Flores joins from Xilinx, where he served in the same capacity.