[News] Intel’s Revival Strategy: CEO Lip-Bu Tan’s Plan for Management Cuts, Foundry Growth, and AI Expansion

According to a report from Economic Daily News, citing Reuters, Intel’s incoming CEO, Lip-Bu Tan, is reassessing the company’s chip manufacturing and AI strategies. As he prepares to take on the role on Tuesday, his priorities include streamlining management and revitalizing the foundry business.

As noted by Reuters, sources indicate that Tan plans to streamline Intel’s overly large middle management, as he believes excessive personnel have been a key factor in slowing down decision-making.

Revitalizing Intel Foundry: A Key Priority

Improving the foundry division’s operations is a top priority for Tan, as the report notes. To strengthen Intel Foundry, he aims to attract new customers and expand its client base. According to an analyst cited in the report, securing at least two major clients could significantly improve Intel’s chances of success in the foundry business.

The report also highlights Intel’s plans to modify its chip manufacturing processes to better align with the needs of key customers, including potential clients like NVIDIA and Google.

In recent weeks, Intel has made notable improvements in its manufacturing processes, garnering interest from NVIDIA and Broadcom, both of which have initiated early test runs, according to Reuters. Additionally, AMD is also assessing Intel’s manufacturing capabilities.

The company’s next-generation advanced chips with AI capabilities, known as Panther Lake, will rely on its in-house “18A” process. As the Reuters report highlights, Intel’s financial performance this year will largely depend on the sales of these upcoming chips.

Intel’s AI Ambitions

Tan also plans to revive Intel’s AI server chip production initiative and explore expansion beyond the server market into various fields, including software, robotics, and foundational AI models, as mentioned by Reuters.

Nevertheless, according to a report from Wccftech, developing AI chips will take several years. Intel is not expected to finalize the design and production of its first AI chip until 2027, with the goal of competing against AI processors from NVIDIA and AMD.

Read more

• [News] Intel Reportedly Taps SuperFluid Cooling for NVIDIA’s Next-Gen Servers, Boosting Taiwanese Suppliers
• [News] Intel’s Initial 18A Wafers Reportedly Roll Out in Arizona; Early Mass Production Likely to Follow
• [News] Intel Taps Veteran Lip-Bu Tan as CEO, with Chip Design and Foundry Units Less Likely to Split

(Photo credit: Intel)