Intel has seen revenue decline at an 8.4% compound annual rate over the past three years as competition intensifies in the foundry and chip-design markets. Its net margin stands at just 0.37% after suspending its dividend last year and carrying a negative net cash position on the balance sheet. By contrast, industry leader TSMC controls roughly 60% of global chip production and more than 90% of the most advanced nodes. Intel’s gross margin of about 36% trails peers, and its reliance on legacy PC and server CPUs has left it vulnerable to cyclical downturns. Although the U.S. and allied governments have pledged subsidies and manufacturing grants under the CHIPS Act, Intel must still demonstrate that its new fabs can reach projected utilization rates above 70% within two years to justify those investments and close the performance gap.

Intel’s foundry business has operated at a loss since its launch, as early fabs came online later and at higher cost than planned. Management aims to achieve break-even in this segment by 2025, with profitability targeted for 2027 as capacity ramps and advanced nodes mature. Geopolitical concerns over Taiwan’s stability have intensified demand for a diversified semiconductor supply chain, positioning Intel to win new customers reluctant to rely solely on TSMC. Industry forecasts suggest that if Intel can secure 10–15% of the global contract-manufacturing market for sub-7nm chips by 2028, the foundry unit could contribute over $20 billion in annual revenue, transforming it from a drag on consolidated results into a key growth driver.