There are multiple components to 's (NASDAQ: INTC) turnaround story, but at the center is the company's aggressive and costly push to rival Taiwan Semiconductor Manufacturing in the semiconductor foundry market. Intel gave up its once-untouchable manufacturing edge through chronic delays and missteps, enabling TSMC to pull ahead and TSMC customers like AMD to sell chips that beat Intel on performance and efficiency.

The process of transforming itself from a company that solely makes chips for itself to a semiconductor foundry that also makes chips for others has been (and will continue to be) a long, drawn-out affair. Intel took the critical step this year of separating its manufacturing operations into a distinct business unit with its own profit and loss statement. In the past, manufacturing costs were spread across Intel's various product segments.

Intel formally unveiled the details of its new reporting structure in April, which led to a steep sell-off in the stock. The foundry segment was broken out for the first time, and the numbers didn't sit well with investors. The unit posted a $7 billion operating loss on $18.9 billion in revenue in 2023.

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Source Fool.com