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Making his debut as CEO at the Intel Vision conference on Monday in Las Vegas, Lip-Bu Tan shared his strategic vision and turnaround plans for the company. According to a report by ijiwei citing Bloomberg, Tan mentioned that Intel needs to divest non-core assets as part of its refocusing efforts.
Engineering-Centered Focus for Intel
Tan did not specify which parts of Intel he considers non-essential to its long-term strategy. However, as emphasized in the company’s press release, he underscored that Intel will remain an engineering-focused company under his leadership.
A Reuters report noted that Tan pledged to give engineers a stronger voice within the company, highlighting that innovative ideas have struggled to take root in the company in recent years. The report also emphasized that his top priority is to attract and retain engineering talent.
In line with that focus, a previous Reuters report, citing sources, said Tan also plans to streamline Intel’s overly large middle management, viewing the excess layers of personnel as a key factor in slowing down decision-making.
A Customer-Centric Shift for Intel’s Foundry
According to Bloomberg, a central question facing Intel’s leadership is whether the company’s turnaround would be more effective if it stays intact or separates its core product and manufacturing divisions.
Tan, however, did not mention plans to divest parts of Intel. Instead, as Bloomberg reports, he focused on the issues that need addressing—highlighting in particular that Intel’s chips for data centers and AI-related workloads have been underperforming.
Intel has reportedly been exploring spin-off plans as part of its broader turnaround strategy. In February 2025, Bloomberg reported that Silver Lake Management is in exclusive talks to acquire a majority stake in Altera.
Meanwhile, speculation has also surrounded Intel’s autonomous driving subsidiary, Mobileye. However, according to a company press release from September 2024, Intel stated it has no plans to divest a majority interest in Mobileye at that time.
Recent Developments in Intel Foundry
In the press release summarizing his keynote speech, Tan also mentioned that Intel’s 18A process technology remains on schedule, approaching first external tape-outs – and high-volume production expected in the second half of the year with the Panther Lake client computing processor.
Meanwhile, according to TechPowerUp, citing Intel engineering manager Pankaj Marria, initial 18A wafers have already begun rolling out from the company’s Arizona facility.
Notably, NVIDIA and Broadcom, the world’s two top AI chip firms, are reportedly eyeing Intel’s 18A process, according to Tom’s Hardware, citing guru.
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(Photo credit: Intel)
