Intel’s newly appointed chief executive, Lip-Bu Tan, has vowed to implement a sweeping cultural shift at the semiconductor giant, likening the transformation to a “day-one start-up” mentality. Speaking at a company conference in Las Vegas on Monday, Tan emphasized the need to attract top talent, foster strong customer relationships, and eliminate bureaucratic inefficiencies that he believes stifle innovation.
His comments come amid Intel’s ongoing struggle to maintain competitiveness in the semiconductor industry. The Financial Times reported that Tan, a seasoned investor and former CEO of chip software company Cadence, was appointed earlier in March after a four-month search for a successor to Pat Gelsinger, who was ousted in December. Tan’s appointment signals Intel’s push for a revitalized approach as it navigates increasing pressure from rivals such as Taiwan Semiconductor Manufacturing Company (TSMC), Nvidia, and AMD.
Tan underscored the importance of reinvigorating Intel’s workforce, stating that one of his key objectives is to recruit some of the best minds in the industry.
“Bureaucracy kills innovation,” he warned, stressing that Intel must shed outdated practices and refocus on agility and creativity. Since August, the company has laid off approximately 15,000 employees as part of a broader cost-cutting strategy. Tan also indicated that Intel would spin off certain non-core businesses while reaffirming its commitment to semiconductor manufacturing, despite calls from some investors to divest from the sector.
Intel’s foundry business remains a critical component of its strategy, and Tan acknowledged the importance of securing key partners. While he did not specify potential collaborators, major industry players such as Nvidia and Apple have yet to commit to using Intel as a manufacturing partner.
Tan also highlighted potential support from the Trump administration, which is exploring ways to aid Intel in strengthening the U.S. semiconductor industry.
“They are asking me: what can we help [with]? And definitely I will come to get their help to do what we need to do,” Tan said.
Intel faces mounting challenges in the artificial intelligence chip space, trailing behind competitors like Nvidia and AMD. The company’s shares have plummeted by 49% over the past year, reflecting investor concerns over its ability to stay competitive.
Tan admitted he was “not happy” with Intel’s current position in the AI data center chip market, pledging to learn from past mistakes and reposition the company for long-term success.
