Intel’s incoming CEO Lip-Bu Tan is reportedly planning a comprehensive restructuring of the company’s manufacturing processes and artificial intelligence strategies—a bold move aimed at reviving the tech giant’s fortunes, according to two people familiar with his plans.
The overhaul, which Tan is expected to outline upon his return as CEO on Tuesday, would involve significant changes to Intel’s chip production methods and a revamp of its approach to AI. Sources say Tan is particularly focused on addressing what he views as a slow-moving, bloated middle management layer, hinting at potential staff cuts to streamline decision-making and boost efficiency.
One of Tan’s core priorities is to reengineer Intel’s manufacturing operations. Once known primarily for producing chips for its own products, the company has since repurposed many of its factories to serve external clients, including industry heavyweights like Nvidia. Tan intends to refocus these operations on winning new customers and improving production yield, especially as Intel gears up to launch its next-generation advanced chips, codenamed Panther Lake, which will incorporate a suite of AI features based on a new set of manufacturing techniques known as "18A."
In a town hall meeting following his appointment as CEO last week, Tan warned employees that the company would need to make “tough decisions” to restore its competitive edge. Industry expert Dylan Patel noted that Tan’s criticism of former CEO Pat Gelsinger centered on the latter’s reluctance to cut inefficient layers in management—a factor that Tan believes hindered Intel’s responsiveness in a rapidly evolving semiconductor market.
Tan, 65, who previously led chip design software firm Cadence and served as an investor and board member at Intel until his resignation last August, is stepping in at a time when Intel is grappling with fierce competition from rivals such as TSMC and Nvidia. The company reported an annual loss of $19 billion in 2024, its first loss since 1986, underscoring the urgency of a turnaround.
Beyond reworking its internal processes, Tan is set on reclaiming Intel’s stature as a “world-class foundry.” A spokesman for the company said that Tan will spend considerable time listening to customers, partners, and employees to position Intel for future success. The immediate challenge for Tan is to optimize Intel Foundry’s performance—improving yield rates and customer service—to attract larger volume commitments from potential clients like Nvidia and Alphabet, among others.
While Tan’s strategy builds on elements of Gelsinger’s previous turnaround plan, his approach appears more focused on internal cost-cutting and operational efficiency. Industry sources expect that while the company will continue to invest in AI research, it could be at least until 2027 before Intel unveils a next-generation AI chip architecture that competes compellingly in the burgeoning market.
As Intel braces for these transformative changes, the semiconductor industry watches closely to see if Tan’s sweeping reforms can restore the company’s long-dorm
The European Space Agency (ESA), Airbus and European partners have put a six-wheeled Mars rover prototype through its paces in Spain’s Tabern...
Azerbaijan won 22 medals, including seven gold, at the Mingachevir Regatta 2026 as more than 100 young rowers from 12 countries competed in the int...
A retired Australian builder has arrived in Baku in his 1929 Pontiac Roadster during an epic journey from Bangkok to Istanbul, using the nearly cen...
Yemen's air force carried out 20 strikes on Houthi targets earlier on Friday, Brigadier General Majid Abdullah Al-Nuzaili, Spokesman for the Yemeni Armed Forces, said. Meanwhile, the Iran-backed Houthis denied targeting a power plant supplying energy to a mosque in Medina, Saudi Arabia.
Israeli Prime Minister Benjamin Netanyahu said Israel may participate in the investigation into a serious incident aboard a flydubai flight bound for Tel Aviv, while investigators examine the motive of the co-pilot involved.
Swiss glaciers lost more than 5 per cent of their ice in 2026, making it one of their worst years on record as a dry winter and repeated heatwaves accelerated melting across the Alps.
Passengers from a flydubai flight that was diverted to Saudi Arabia after an alleged attempt to crash the aircraft have arrived safely in Israel.
Russia has warned NATO that it would be prepared to use nuclear weapons if the Western alliance attempted to isolate Kaliningrad, a Russian exclave on the Baltic Sea, according to a diplomatic document seen by Reuters.
A retired Australian builder has arrived in Baku in his 1929 Pontiac Roadster during an epic journey from Bangkok to Istanbul, using the nearly century-old car to raise money for Parkinson’s research.
Around 400 schools across France remained closed on Friday as protests over teacher shortages and deteriorating buildings escalated into violence, leaving dozens injured and leading to 2,000 arrests.
Russian President Vladimir Putin said on Thursday that Moscow wanted to end the war in Ukraine through negotiations as soon as possible, while insisting that any settlement must meet conditions acceptable to Russia and include security guarantees.
The family of Renee Good, a U.S. citizen fatally shot by an immigration agent in Minneapolis in January, has sued the Trump administration, accusing federal officials of excessive force and unconstitutional conduct.
Ukraine is working to resolve a diplomatic dispute with South Korea after Kyiv publicly disclosed the transfer of two North Korean prisoners of war to Seoul, Ukrainian Foreign Minister Andrii Sybiha said on Thursday, 1 October.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment