Intel reported an operating loss, a blow to the company as it tries to regain the technological leadership it lost to TSMC, reports Reuters.

The company reported an operating loss of $7 billion for 2023, compared to a loss of $5.2 billion in 2022. Revenues for the year fell by 31%, from $27.49 billion in 2022 to $18.9 billion in 2023.

Intel CEO Pat Gelsinger also said that in 2024, operating losses from the chip business will be even higher. The company plans to break even in 2027.

Gelsinger said the losses are the result of bad decisions. A year ago, the company decided not to use ASML’s ultraviolet radiation (EUV) machines, which, although costing more than $150 million, are more cost-effective than previous chip manufacturing tools.

Now Intel has decided to use these machines, which will gradually replace the old ones.

“In the post EUV era, we see that we’re very competitive now on price, performance (and) back to leadership. And in the pre-EUV era we carried a lot of costs and (were) uncompetitive,” Gelsinger said.