Intel's revenue in Q4 in 2022 fell by 32% year-on-year, and wafer foundry service won new customers

Recently, Intel announced the fourth quarter of 2022 and the full year of 2022. According to the information, in the fourth quarter of fiscal year 2022, Intel achieved revenue of $14 billion, down 32% year on year; In 2022, the annual revenue was US $63.1 billion, down 20% year on year.

Intel business groups' revenue in the fourth quarter and the whole year of 2022

From the perspective of revenue of each business unit, in the fourth quarter of 2022, the revenue of Intel's customer computing business group, data center and AI business group decreased by 36% and 33% year on year respectively, while the network and edge computing business group, accelerated computing system and graphics business group were basically flat year on year, and Mobileye and OEM services achieved 59% and 30% year on year growth respectively. In the whole year of 2022, the customer computing business group, data center and AI business group decreased by 23% and 15% respectively year on year, and other business groups achieved year-on-year growth, of which Mobileye increased by 35% year on year, and the OEM service increased by 14% year on year.

According to the financial report, Intel OEM service set a new high in revenue in the fourth quarter of 2022 and the whole year of 2022, and has carried out chip design cooperation with 7 of the top 10 wafer OEM customers in the world. Recently, Intel released the fourth quarter and full year financial results of 2022, which may be said to be unsatisfactory, but one of the highlights is that it announced that Intel foundry service (IFS) received orders from a major "cloud, edge and data center solution provider" and will use Intel 3 technology to manufacture chips.

However, Intel did not disclose the name of the customer or the specific OEM products.

"I am very happy to add a leading provider of cloud computing, edge and data center solutions and become a leading customer of Intel 3." Intel CEO Pat Gelsinger said, "including former customers such as Mediatech, can bring more than $4 billion worth of long-term contract revenue for Intel OEM services."

The company has been customizing Intel 20A and Intel 18A (at 2nm and 1.8nm respectively) for its OEM customers. In contrast, its current and upcoming Intel 7 (10 nm enhanced SuperFin), Intel 4 (7 nm with EUV) and Intel 3 (7 nm with EUV+) nodes are designed for Intel itself. Therefore, it is a great achievement for Intel to win a big customer with Intel 3 technology (which will be put into production in 2024).

At the same time, Intel may produce a semi-customized Xeon processor for a major customer.

According to the report, Intel's IFS has been growing steadily. The OEM department won two initial customers, Qualcomm and Amazon Network Services (AWS), and won a contract from the United States Department of Defense. In addition, Intel said that it was actively cooperating with many large Fabless chip designers on specific businesses, which is also a considerable achievement for a contract chip manufacturer that has been engaged in this business for less than two years.

Pat Gelsinger said, "At present, we are also actively cooperating with 7 of the 10 largest wafer foundry customers, including 43 potential customers and testing chips for ecosystem partners. In addition, we continue to make progress on Intel 18A and share the engineering version of PDK 0.5 (process design kit) with major customers, and expect to release the final product in the next few weeks."

For the first quarter of 2023, Intel expects revenue to be between US $10.5 billion and US $11.5 billion.