Intel's (NASDAQ:INTC) ambitions to reclaim its status as the leading manufacturer of advanced semiconductor chips encountered a significant setback, as evidenced by a 5% drop in its share price in Wednesday's premarket trading.

The downturn comes in the wake of revelations about the escalating losses within its contract chip-making division, casting doubts on the company's ability to match the profitability levels of industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).

The technology giant disclosed on Tuesday that its foundry business, a crucial element of its strategy to regain market dominance, reported operating losses of $7 billion in 2023, a significant increase from the $5.2 billion recorded in 2022. 

This financial strain puts Intel on the verge of shedding more than $9 billion in market value should premarket losses persist.