Intel drops 9% as chipmaker’s foundry business axes projects

IntelYonkakçı said that the stock fell by 9% after saying that it would reduce the casting costs in the attempt to return its struggling business.

Intel’s worries about where he left the chip production business overshaded a better earning report than expected late on Thursday. Intel encountered income and released a sales estimation that exceeded predictions for the third quarter. According to LSEG, the company reported 10 cents of corrected earnings per share and completed the average analyst for a penny.

The CEO Lip-this tan, who was assigned to work in March, wrote to employees in a note that the company’s upcoming chip production process, called 14A, will be built on the basis of approved customer commitments and “there will be no empty controls”. One filing With the US Securities and Stock Exchange Commission on Thursday, Intel said that if he could not secure a customer in his next technology cycle, he could completely “pause or stop the documentary business.”

“Our expectations to provide an important external casting customers for any of our nodes and an important external casting customer for Intel 14A are uncertain.” He said.

Intel’s falling on Friday wiped most of the rally for the year. Stocks lost 60% of its value in 2024, the worst year record. The collapse reflected the fact that Intel could not make much progress in the artificial intelligence market. NvidiaSkepticism surrounding the casting bet.

The company said it underlines the chip facility projects in Germany and Poland and slowed down production at the OHIO factory. Intel depends on a large customer to succeed in Foundry business.

“Management wants external customer commitments to follow the node, but in the meantime, the product adds more uncertainty to the road maps and makes the customer’s adoption more likely,” Barclays analysts wrote as a note in customers.

Tan, who changed Pat Gelsinger to CEO, said in the note that the first few months of the company’s world were not “easy”. Intel has gone through most of its dismissal plans, which will eliminate 15% of the labor force and finish the year with 75,000 employees.

Tan said, “For the last few years, the company has made a lot of investment without enough demand.” “In this process, our factory footprint was unnecessarily disintegrated and insufficient.”

Intel’s net damage expanded from $ 1.61 billion or $ 2.9 billion from $ 2.9 billion or 67 cents per share in the previous year’s period. The company recorded a fee of “800 million dollars of value $ 800 million for” unidentified re -use “.

Analysts at JPMorgan Chase called Intel’s casting decision as a “positive step”, but ongoing market share losses continue to be a concern.