Intel Shares Slide as Losses Mount and Foundry Business Faces Uncertain Future

Intel shares dropped nearly 5% after the company reported a larger-than-expected quarterly loss and warned it may scale back or even exit its foundry business unless it secures enough external demand. This marks a potential shift in strategy away from its ambitious plans to rival global chip manufacturers like Taiwan’s TSMC.

In its latest earnings report, Intel posted revenue of $12.9 billion for the June quarter, slightly exceeding expectations. However, the company recorded an adjusted loss of 10 cents per share, falling short of the forecasted 1 cent profit. The results were weighed down by restructuring charges, including job cuts and facility impairments.

Intel CEO Patrick Gelsinger said the future of the company’s next-generation 14A chip manufacturing technology now depends on confirmed orders. If customers don’t commit, Intel may halt investment in these advanced nodes. The company could focus its leading-edge 18A process on internal products only, raising concerns about its viability as a contract chipmaker.

The company also revealed plans to cut its global workforce to 75,000 by the end of the year, a significant reduction from 96,000 in 2023. Several planned fabrication projects in the U.S. and Europe have already been delayed or suspended to curb capital expenditure.

Intel’s foundry unit, which was meant to challenge TSMC and Samsung, has struggled to attract major clients. Analysts say that unless Intel can secure a marquee customer, its ambitions to become a leading chip foundry may falter.

Once a dominant force in chipmaking, Intel is now playing catch-up to rivals AMD and Nvidia, both of which have seen stronger stock performance in 2025. The company’s potential retreat from the foundry business raises broader concerns about America’s efforts to regain leadership in advanced semiconductor manufacturing.