12:07 PM EDT, 04/03/2024 (MT Newswires) -- (Updates to add stock move in the headline and the first paragraph.)

Intel ( INTC ) shares slid 7% in recent Wednesday trading after news outlets quoted company officials as saying Tuesday that the company's chip foundry business suffered a 2023 operating loss of $7 billion on sales of $18.9 billion, widening a loss of $5.2 billion on $27.5 billion in sales a year earlier.

The disclosure, during an hour-long webinar for investors, marked the first time the company disclosed foundry numbers alone, CNBC reported.

The announcement came as Chief Executive Patrick Gelsinger unveiled plans to expand its foundry business to make microchips for other companies, a sector dominated globally by Taiwan Semiconductor Manufacturing (TSM).

Intel ( INTC ) is among the only US firms producing microchips in the US, and as such received $20 billion in federal funding. Microsoft [MSFT] has already committed to commissioning chips through its foundry operations, Intel ( INTC ) said.

Gelsinger expects foundry losses to peak this year but for the business to break even halfway between this quarter and the end of 2030. "We've committed to being the number two foundry by the end of the decade," he said.

Price: 40.87, Change: -3.07, Percent Change: -7.00