Intel plans to announce its sixth consecutive quarterly loss because its revenue continues to decline while the company transforms its contract chipmaking strategy. The new CEO Lip Bu-Tan leads the company toward using the 14A node instead of the 18A process because this choice helps Intel compete against TSMC foundry leadership.
The market will focus on the transition process because Intel needs to write down its massive investment in the 18A technology after spending billions on its development. The financial analysts predict that the company will face massive losses reaching into the billions.
Intel expects to report a net loss of $1.25 billion during Q2 while its revenue decreases by more than 7% to $11.92 billion. The foundry business of the company will generate $4.49 billion in revenue but this amount comes from internal manufacturing operations.
Since his March takeover Tan has started to reduce operations by selling non-core business units. Intel sold its majority stake in Altera during April and plans to sell parts of its network and edge business segments.
The market will focus more on 14A process deployment updates than financial results because Intel seeks to recover its position against Nvidia and AMD and TSMC in the chip industry.
