Intel's new CEO, Lip-Bu Tan, is planning a significant overhaul of the company's manufacturing and AI operations. Tan, who returns to Intel as CEO this week, aims to revamp the company's approach to AI, cut staff, and restructure the manufacturing operations to make them more efficient.
Tan's priorities include improving performance at Intel Foundry, the company's manufacturing arm, by aggressively wooing new customers. He also plans to restart plans to produce chips that power AI servers and explore areas beyond servers, such as software, robotics, and AI foundation models.
The new CEO has been critical of Intel's past decisions, including the company's failure to build chips for smartphones and its slow response to the demand for AI processors. Under Tan's leadership, Intel will focus on becoming a contract chip manufacturer, competing with Taiwan Semiconductor Manufacturing Co. (TSMC).
Tan plans to address the company's slow-moving and bloated middle management layer by cutting staff. He also aims to make Intel's AI operations more efficient and effective, and to improve the performance of Intel Foundry. By exploring new areas beyond servers, Tan hopes to drive growth and innovation at Intel.
