Intel financial report reorganization foundry independent accounting: target 2030 world second

Intel announced a new financial reporting structure, aimed at significant cost savings, improve operational efficiency and asset value, which was just established at the end of February just before the Intel Foundry formally completely independent accounting, Altera also re-accounted for separately.

So far, Intel has opened a new era.

Intel Foundry, formed on the basis of the former Intel Foundry Services (IFS) business unit, is the world's first to launch system-level foundry for the AI era, providing full-stack optimization from factory network to software, including foundry technology development, foundry manufacturing and supply chain, and foundry services.

Beginning in the first quarter of 2024, Intel will report segment results by the following operating divisions:

Client Computing Group (CCG), Data Center and Artificial Intelligence (DCAI), Networking and Edge (NEX), Intel Foundry, Altera (formerly the Programmable Solutions Business Unit now operating independently), Mobileye, and and others.

CCG, DCAI and NEX are collectively referred to as "Intel Products" and Altera, Mobileye and others are collectively referred to as "All Others".

Under the new financial reporting structure, Intel Foundry will account for revenues from external foundry customers, Intel products, and technology development and product manufacturing costs that were previously allocated to Intel products.

Intel has filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC), which contains restructured operating segment results consistent with the foundry model for 2023, 2022, and 2021.

Intel said Intel Foundry's operating margins are expected to improve as process processes return to leadership by shifting the yield mix to the leading EUV extreme ultraviolet lithography node.

Intel Foundry's operating loss is expected to peak in 2024, with break-even operating margins by the end of 2030, when it plans to achieve 40 percent non-GAAP gross margin and 30 percent non-GAAP operating margin.

Currently, Intel Foundry has more than $15 billion worth of expected deals with external customers and aims to become the second largest foundry in the world by 2030.

Intel's Product Division aims to achieve 60% non-GAAP gross margin, 40% non-GAAP operating margin by the end of 2030.