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According to a report, Intel's new CEO, Lip-Bu Tan, is set to significantly reduce the firm's workforce as he aims to turn around the firm and establish a foothold in the foundry and artificial intelligence industries. Lip-Bu has taken the helm as Intel's first permanent CEO since Patrick Gelsinger left in December, and as per today's report, he will continue Gelsinger's approach to focus on the foundry business. The new CEO takes the helm at the world's largest integrated chip manufacturer after speculation of a spinoff of its foundry business. However, he put the reports to rest in a letter to employees that outlined his aim to make Intel one of the top foundries worldwide.
Intel CEO Lip-Bu Tan Will Aim To Win Least Two Major Customers For Foundry Business, Says Report
As per Reuters, Lip-Bu followed up his letter to Intel's employees by speaking at a company town hall meeting after his appointment. The new Intel boss has extensive experience overseeing the firm's affairs as he served on its board of directors as recently as in 2024. On an immediate basis, he wants to continue Gelsinger's approach and set up Intel to compete in the AI industry and establish a strong foothold in the foundry industry.
Sources privy to the contents of the meeting believe that Lip-Bu will focus on streamlining Intel's middle management for agile operations and cost reduction. Intel already underwent sizable layoffs in 2024 as it struggled to control costs and posted quarterly losses. However, while Intel's shares fell on the layoff news last year, they are up by nearly 25% since Lip-Bu took over as investors express confidence in the veteran executive's ability to revive struggling companies.
His letter to employees stressed the need to make Intel a world-class foundry, and in the town hall, the CEO reiterated his goal. Contract manufacturing has grown in urgency in America during the AI wave and the Trump administration's push to make advanced chips in America. Intel also received billions of dollars in funds through the CHIPS and Science Act under the Biden administration, and its shares saw considerable buying interest earlier this year on renewed hopes of a US manufacturing push.
However, according to sources familiar with the plans, layoffs will be the short-term approach as AI chips are likely to take years to develop. Intel is unlikely to develop and design its first AI chip until 2027.
While he aims to build Intel's foundry business and restart an AI push, Lip-Bu is also critical of Gelsinger's approach, Reuters reports. A key point of contention between him and his predecessor has been a bloated management structure, which has left Intel unable to focus on customer satisfaction.
A key factor in his success will be winning over new customers for the foundry business. Intel is currently developing its leading-edge 18A chip manufacturing process. If 18A successfully enters production and ships, then the firm will have achieved technological parity with its key foundry rival, Taiwan's TSMC. The shares have gained 7.6% today as they build on the rally since Lip-Bu's appointment.
wccftech.com
Intel CEO Lip-Bu Tan Will Aim To Win Least Two Major Customers For Foundry Business, Says Report
As per Reuters, Lip-Bu followed up his letter to Intel's employees by speaking at a company town hall meeting after his appointment. The new Intel boss has extensive experience overseeing the firm's affairs as he served on its board of directors as recently as in 2024. On an immediate basis, he wants to continue Gelsinger's approach and set up Intel to compete in the AI industry and establish a strong foothold in the foundry industry.
Sources privy to the contents of the meeting believe that Lip-Bu will focus on streamlining Intel's middle management for agile operations and cost reduction. Intel already underwent sizable layoffs in 2024 as it struggled to control costs and posted quarterly losses. However, while Intel's shares fell on the layoff news last year, they are up by nearly 25% since Lip-Bu took over as investors express confidence in the veteran executive's ability to revive struggling companies.
His letter to employees stressed the need to make Intel a world-class foundry, and in the town hall, the CEO reiterated his goal. Contract manufacturing has grown in urgency in America during the AI wave and the Trump administration's push to make advanced chips in America. Intel also received billions of dollars in funds through the CHIPS and Science Act under the Biden administration, and its shares saw considerable buying interest earlier this year on renewed hopes of a US manufacturing push.
However, according to sources familiar with the plans, layoffs will be the short-term approach as AI chips are likely to take years to develop. Intel is unlikely to develop and design its first AI chip until 2027.
While he aims to build Intel's foundry business and restart an AI push, Lip-Bu is also critical of Gelsinger's approach, Reuters reports. A key point of contention between him and his predecessor has been a bloated management structure, which has left Intel unable to focus on customer satisfaction.
A key factor in his success will be winning over new customers for the foundry business. Intel is currently developing its leading-edge 18A chip manufacturing process. If 18A successfully enters production and ships, then the firm will have achieved technological parity with its key foundry rival, Taiwan's TSMC. The shares have gained 7.6% today as they build on the rally since Lip-Bu's appointment.
Intel AI Chip Breakthrough To Compete With NVIDIA Unlikely Before 2027 - Report
According to a report, Intel's new CEO, Lip-Bu Tan, is set to significantly reduce the firm's workforce as he aims to turn around the firm and establish a foothold in the foundry and artificial intelligence industries. Lip-Bu has taken the helm as Intel's first permanent CEO since Patrick...
wccftech.com