Mon Mar 17 20:00:00 UTC 2025: ## Intel’s New CEO Plans Sweeping Restructuring to Revive Tech Giant
**SAN FRANCISCO** – Intel’s incoming CEO, Lip-Bu Tan, is poised to implement significant changes to the company’s chip manufacturing and AI strategies, aiming to reverse its recent decline. Tan, who officially returns on Tuesday, plans a restructuring that includes streamlining middle management – potentially through layoffs – and overhauling Intel’s manufacturing operations.
Tan’s return marks a significant shift following a decade of struggles under previous CEOs, culminating in a $19 billion annual loss in 2024. He intends to focus on improving Intel Foundry, the company’s contract chip manufacturing arm, by aggressively attracting new clients like Microsoft and Amazon. Restarting production of chips for AI servers and exploring opportunities in software, robotics, and AI foundation models are also on the agenda.
While Tan’s approach builds upon the foundation laid by his predecessor, Pat Gelsinger, it signals a more decisive and potentially aggressive strategy. Sources indicate Tan has been critical of Gelsinger’s execution, particularly regarding Intel Foundry’s service and competitiveness against industry giant TSMC. Tan’s plans involve improving manufacturing processes to make them more appealing to potential clients such as Nvidia and Google.
The short-term focus is on improving the yield and output of Intel’s 18A process, crucial for the success of its next-generation AI chip, Panther Lake. Long-term goals include a faster annual release schedule for AI chips, mirroring Nvidia’s strategy. However, experts predict this will take several years, with a truly competitive AI chip architecture not expected until at least 2027.
The announcement of Tan’s plans sent Intel’s stock price up more than 8% on Nasdaq. While an Intel spokesperson emphasized Tan’s commitment to collaboration and listening to stakeholders, the upcoming changes promise a period of significant transformation for the technology giant.
First Piper 