Intel’s CEO Lip-Bu Tan plans major restructuring of chip manufacturing and AI strategy to revive company

Intel has appointed Lip-Bu Tan as its new CEO amid efforts to revitalize the struggling semiconductor giant. Tan, a seasoned executive and former board member, is considering significant changes to Intel’s chip manufacturing processes and artificial intelligence operations. His strategy includes spinning off non-core business units and focusing on custom semiconductor products tailored to customer needs. Tan aims to address Intel’s challenges such as lost engineering talent, a bloated management structure, and lagging innovation that allowed competitors like Nvidia and ARM to dominate AI and smartphone chip markets. Despite setbacks, Intel remains committed to its foundry business and plans to begin mass production of its proprietary 18A process technology in the second half of the year. Tan’s approach involves working closely with engineers and customers to drive product development and operational efficiency. These moves come after Intel reported a $19 billion annual loss last year and follows the departure of former CEO Pat Gelsinger. The company also benefits from federal support through the CHIPS Act to boost U.S. manufacturing capabilities. Tan’s leadership marks a pivotal moment as Intel seeks to regain market leadership and adapt to the evolving semiconductor landscape.