The prominent news agency Reuters reported that Intel’s incoming CEO, Lip Bu Tan is expected to go for a huge transformation at the tech giant through restructuring its chip manufacturing and AI operations.
According to sources, Tan is planning to streamline the company’s management structure and revamp its foundry business to regain market dominance.
Intel Targets Other Domains With New CEO
Tan, who previously served as CEO of Cadence and was a member of Intel’s board until last August, plans to cut down on middle management, which he believes has slowed decision-making. He also plans to make Intel Foundry, which is the company’s manufacturing arm that produces chips for clients like Microsoft and Amazon, more competitive by improving efficiency and attracting high-profile customers such as Nvidia and Google.
For most of its history, Intel mainly focused on manufacturing its own chips. Under former CEO Pat Gelsinger, the company began producing semiconductors for other companies; but struggled to match the service and reliability of competitors like Taiwan’s TSMC. With the new leadership, Tan is planning to address these gaps and restore Intel’s reputation as a world-class foundry.
Intel’s next-generation AI chip, Panther Lake is expected to play a pivotal role in the company’s turnaround. This chip, built using Intel’s new 18A process, is crucial for boosting financial performance in the coming years.
Beyond AI server chips, Tan also plans to expand Intel’s presence in the other domains, software, robotics, and AI models. However, analysts suggest it could take until 2027 for Intel to develop a competitive AI chip architecture.
While Tan’s strategy mirrors some of Gelsinger’s plans, he aims to make tough decisions that his predecessor hesitated to take. As Tan returns to Intel, he faces the challenge of balancing immediate improvements while setting the stage for long-term growth.
Source: https://www.reuters.com/technology/intels-new-ceo-plots-overhaul-manufacturing-ai-operations-2025-03-17/
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