In his first public appearance as CEO of Intel, Lip-Bu Tan outlined a bold vision for the chipmaking giant, signaling a significant shift in strategy as the company works to regain its footing in an increasingly competitive semiconductor industry. Speaking at the Intel Vision conference in Las Vegas on Monday, Tan revealed that Intel will spin off non-core assets and focus on developing custom semiconductors to better align itself with its customers’ needs.
“We have a lot of hard work ahead,” Tan told the audience of Intel customers. “There are areas where we’ve fallen short of your expectations.” The veteran semiconductor executive, who took over the top spot at Intel in March 2025, acknowledged that the company faces significant challenges in the wake of losing key engineering talent and falling behind rivals in crucial areas like data centers and AI-related technology.
Despite a string of recent setbacks, Tan is committed to restoring Intel to its former dominance. Under his leadership, the company will overhaul its product lineup and refocus its manufacturing processes to improve efficiency and meet the growing demand for more specialized semiconductor solutions. While Tan refrained from naming specific areas of Intel’s operations that are no longer central to its mission, he stressed the importance of innovation and adaptability.
The Road Ahead for Intel: Innovation and Customization
One of Tan’s central goals is to make Intel more responsive to customer needs, particularly in the booming fields of artificial intelligence and cloud computing. “We fell behind on innovation,” Tan admitted, “We have been too slow to adapt and meet your needs.” To turn things around, the CEO plans to implement a more flexible approach to production, allowing external clients to design and specify their own custom chips rather than Intel dictating the manufacturing process.
For Tan, the key to Intel’s future lies in offering tailored solutions to major tech players who are looking for highly specialized chips to power AI applications and data center operations. This shift towards customization reflects a broader trend in the semiconductor industry, where companies are increasingly demanding bespoke chips designed for specific workloads.
Tan’s comments on Intel’s direction mark a departure from the strategy of his predecessor, Pat Gelsinger, who had sought to turn Intel into a chip foundry—manufacturing chips for third-party clients. While that initiative is still in its early stages, Tan emphasized that Intel’s focus will now be on meeting customer specifications for custom parts, allowing for more collaboration and responsiveness in an industry that is constantly evolving.
Challenges and Opportunities
Tan’s appointment as CEO initially sparked optimism among investors, but Intel’s stock has since declined amid broader market volatility. Tan’s announcement at the Intel Vision conference led to a slight dip of 1.2 percent in extended trading, reflecting the uncertainty surrounding the company’s future.
While Tan faces a steep uphill battle to regain Intel’s former market leadership, his commitment to the company’s turnaround is evident. “It was very hard for me to see it struggle,” Tan said, explaining why he took on the CEO role later in his career. “I simply could not stay on the sidelines knowing that I could help.”
Intel, once the dominant force in the semiconductor industry, now finds itself trailing rivals like Nvidia, which has surged ahead with its AI accelerator chips. The company is under intense pressure to develop its own competitive products in this space, particularly as the AI boom continues to reshape the tech landscape.
Tan has acknowledged the challenge of creating an AI accelerator chip that can rival Nvidia’s offerings, but he remains optimistic that Intel can regain its competitive edge through a renewed focus on customer-centric innovation and operational efficiency. He also stressed that there’s no quick fix to the company’s problems and that he’s committed to leading Intel through this transformation for as long as it takes.
A New Chapter for Intel
Tan’s strategy of spinning off non-core assets and doubling down on custom semiconductor solutions represents a new chapter for Intel, one focused on innovation, adaptability, and customer satisfaction. As the company navigates the complexities of the semiconductor market, Tan’s leadership will be crucial in determining whether Intel can regain its position as a leader in an industry that is increasingly defined by rapid technological advancements and fierce competition.
In the coming months, all eyes will be on Intel as it reshapes its operations and product offerings under Tan’s stewardship. With a laser focus on customization and innovation, the company hopes to not only reclaim its former glory but to also chart a new path in an era of technological disruption.
