Intel's new CEO says company will spin off non-core units
01 Apr 2025

Intel's recently appointment CEO, Tan Lip-bu, has announced a major strategic shift for the company.

Speaking at the Intel Vision conference in Las Vegas, he revealed plans to spin off assets that are not essential to Intel's core mission.

The idea is to better align with customer needs and create new products including custom semiconductors.

This move comes as part of his broader strategy to restore Intel's dominance in the semiconductor industry.

CEO emphasizes need for improvement
Areas of focus

During his first public appearance as CEO, Tan acknowledged the challenges facing Intel.

He said, "We have a lot of hard work ahead," and admitted that there are areas where Intel has not met customer expectations.

The veteran semiconductor executive emphasized the need to replace lost engineering talent, improve the company's balance sheet, and refine manufacturing processes to better serve potential customers.

Intel's product and manufacturing operations remain intact
Strategic direction

Despite the challenges, Tan didn't show any plans to divest parts of Intel. Rather, he stressed on the need for improvement in product and manufacturing operations.

Specifically, he noted that Intel's chips for data center and artificial intelligence-related work were not up to the mark.

"We fell behind on innovation," Tan admitted, adding that "We have been too slow to adapt and meet your needs."

"It won't happen overnight, but I know we can get there," he added.