Lip-Bu Tan is taking over as Intel CEO. In addition to the position, he is also taking over the rescue plan from his predecessor, Pat Gelsinger.
Under Tan’s leadership, Intel will continue to produce chips for competitors with Intel Foundry. He communicated this plan to Intel employees immediately upon his appointment. The strategy is bold, as chip production has historically been only a cost center for Intel. This same approach ultimately cost predecessor Gelsinger his position as CEO.
‘Engineering-focused’
The message has since been shared publicly on Intel’s website. It becomes clearer that while the core principles of the previous plan will be adopted, the implementation will not be an exact replica. Tan speaks of “The New Intel,” a company that will learn from past mistakes, refocus on its core mission, and reshape challenges into opportunities.
In his statement, the new Intel CEO leaves no doubt where the focus will be. “Under my leadership, Intel will be an engineering-focused company. We will push ourselves to develop the best products, listen intently to our customers and hold ourselves accountable to the commitments we make so that we build trust.”
Split uncertain
It remains unclear from the CEO’s initial public message whether there will still be a separation of Intel Foundry Services (IFS). This was a point of contention with predecessor Gelsinger. He had been making significant efforts to increase production capacity. Construction of a plant in Germany began with financial support from the European Chips Act. In the United States, Intel later secured government funding as well, enabling plans for a facility in Ohio.
In any case, the interim CEOs had not ruled out a potential split. The success of a new chip technology would determine whether such a separation was necessary. Whether that plan will continue under the new CEO’s leadership remains to be seen.