Intel CEO Calls TSMC ‘Amazing’ Company, Says Company Still Waiting for CHIPS Act Money (Video)

Another day of kitchen sink revenue from chip giant Intel (INTC).

Intel shares rose nearly 7% in aftermarket trading Thursday as the struggling American icon managed to outperform expected forecast for the fourth quarter.

“This was a critical quarter for us, and I think that’s encouraging for the future,” Intel’s CEO said. Pat Gelsinger told Yahoo Finance moments after the call ended about the company’s financial results (video above).

But the market’s initial reaction may be a bit exaggerated when looking at the quarterly results.

Intel reported total non-cash charges of $15.9 billion related to inventory write-downs and lowered performance expectations for some businesses, such as self-driving car company Mobileye (MBLI), where he owns a controlling stake. The company reported an operating loss at Intel Foundry (Intel’s new chip manufacturing division) of $5.8 billion on sales of $4.4 billion.

Intel has taken a cautious stance on the state of its foundry business in 2025. In the earnings call, management promised to continue its $10 billion cost-cutting plan and explore alternative sources of financing to support its chip manufacturing ambitions.

Gelsinger told Yahoo Finance that there is no deal in sight in terms of external financing.

He reiterated that Intel will push to open chip factories in states like Ohio and Arizona, even though it has yet to receive billions of dollars in CHIP Act funding.

The Biden administration has given Intel $8.5 billion in direct funding for its projects, but the company is still waiting for money as government officials determine milestones it must meet.

“Overall, we view the CHIPS Act as a critical issue that we have invested a lot of time and energy into, and as we said in our earnings report, we are disappointed in the time it has taken to implement it,” Gelsinger said.

“It has been more than two years since the CHIPS Act was passed. And during that period, I invested $30 billion in manufacturing in the US and we received $0 from the CHIPS Act. This took too long, we need to finish this. “

Of course, Wall Street still sees a bumpy road ahead for Intel.

Intel faces an ‘uphill battle’ to turn around and compete with the likes of Nvidia (NVDA), AMD (AMD) and Taiwanese TSMC (TSM), Goldman Sachs analyst Toshiya Hari recently told Yahoo Finance.

He adds that it will take some time for the company to bring its technology—especially artificial intelligence chips—to the level of its competitors, if it can do so at all.

And BofA analyst Vivek Arya set a cautious tone toward Intel in a new episode of the Opening Bid podcast (listen at Here).

Gelsinger also explained the company’s relationship with TSMC to Yahoo Finance.

Reuters reported that Gelsinger made comments early in his tenure at Intel that strained relations with the semiconductor giant. In turn, TSMC refused the discount that Intel gave on 3-nanometer wafers.

“This is an amazing company. They just created a foundry model, they serve customers very well and serve us well. And Lunar Lake, the artificial intelligence computer that we talked about, we couldn’t have done it without TSMC—they “we played a critical role in the success of that project,” Gelsinger said.

“However, we want to be a large-scale Western foundry, and we think that is fundamentally important for the Western world… And finally, I also supply them with some of our modern equipment. So it’s a complex relationship, but a critical one. for Intel, for TSMC, for the industry,” Gelsinger added, citing TSMC as a customer and competitor with whom they have a great partnership.

Intel shares have fallen 55% since the beginning of the year.

Summary of Income

• Net sales: -6% YoY to $13.3 billion vs. $13.02 billion estimate.

  • Sales of client computers: $7.3 billion vs. $7.46 billion estimate.

  • Data Centers and AI Sales: $3.3 billion vs. $3.15 billion

  • Network and peripheral sales: $1.5 billion vs. $1.39 billion

  • Mobileye Sales: $485 million vs. $485.5 million

  • Intel Foundry Sales: $4.4 billion vs. $4.44 billion

• Adjusted Gross Profit: 18% vs. 38% estimate

• Adjusted EPS: -$0.46 (+$0.41 a year ago) vs. -$0.03 estimate.

What else caught our attention: Q4 guidance

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Brian Sozzi – Executive Editor of Yahoo Finance. Follow Sozzi on X @BrianSozzi and further LinkedIn. Advice on deals, mergers, activist situations or something else? Send an email to [email protected].

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