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Intel’s newly appointed CEO is setting a bold new direction for the renowned US semiconductor firm. In a recent address at a company event held in Las Vegas, Lip-Bu Tan emphasized the necessity of a “cultural overhaul” within Intel. His aim is to draw in top-tier talent, nurture strong customer relations, and streamline operations by cutting down on needless bureaucracy.
Tan took the helm at Intel earlier this month, stepping in after the company’s extensive search to replace Pat Gelsinger, who was let go by the board last December. Tan brings a wealth of experience from his previous role as CEO of Cadence, a major player in the chip software industry, coupled with his extensive investment background in the sector.
At the event, Tan outlined his primary goal: to attract the brightest minds in the industry to join or return to Intel, fostering an environment of innovation reminiscent of a startup’s first day. He remarked, “Innovation cannot thrive in the presence of excessive bureaucracy,” during his debut public address as Intel’s CEO.
In an effort to rejuvenate its prospects, Intel has already undertaken major restructuring efforts, including cutting around 15,000 jobs since this past August when it announced a strategic cost-reduction initiative. Tan also mentioned Intel’s plan to offload some of its non-essential divisions while reiterating its unwavering commitment to its core chip manufacturing operations, despite pressure from some investors to pivot away from this focus.
Building up a formidable “foundry” is also on Tan’s agenda. He emphasized that achieving this goal will involve cultivating critical partnerships with a select few major customers, on whom the company will heavily rely. While he didn’t disclose names, industry giants like Nvidia and Apple remain tentative about engaging with Intel as a manufacturing partner.
Seeking government support is another key part of Tan’s strategy, aligning with broader federal objectives to secure the United States’ leadership in the semiconductor arena—a move that the Trump administration has shown readiness to support. Tan is prepared to engage with government officials to secure the backing necessary for Intel’s ambitious plans.
The transition of leadership follows Intel’s recent turbulence and challenges, particularly in keeping pace with Taiwan Semiconductor Manufacturing Company on the production front and falling behind titans like Nvidia and AMD in the rapidly advancing AI chip design sector. Acknowledging the current slump, with Intel’s shares plummeting by 49% over the last year, Tan candidly expressed his dissatisfaction with Intel’s present standing in the AI data center chip market and committed to learning from prior missteps to propel the company forward.
