Intel has announced changes to its financial reporting to align with the current direction of the company’s IDM 2.0 initiative. This new reporting format will better showcase the capabilities of Intel Foundry, the chip manufacturing arm of Intel, which will now produce chips for external clients as well.
The changes in financial performance metrics will be as follows:
The PC chip, Data Center, and AI, and Network Device groups will now be consolidated into the Intel Products group (still reported separately by category). Intel Foundry, the chip manufacturing business, will record revenue from both Intel and external clients, as well as include all production and research and development costs under this business unit (previously scattered across different groups). Altera, Mobileye, and other separately listed businesses will be grouped as All Other.
Intel is also revising its financial statements retrospectively up to 2021 to align with the new structure that will be implemented in the Q1 2024 quarterly reports. It is evident that Intel Foundry has been operating at a loss every year, with a projected increase in losses of $6.955 billion by 2023. Intel expects the losses to peak in 2024 and then improve, as the planned upgrades, including 5 node transitions in 4 years, will be completed this year.
TLDR: Intel is changing its financial reporting structure to reflect its IDM 2.0 initiative, consolidating business units, including Intel Foundry, and projecting losses to peak in 2024 before improvements due to planned upgrades.
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