The struck US chip manufacturer Intel has had a new boss since Tuesday. And that depends directly on the company’s problems.
• New Intel CEO LIP-BU TAN is planning profound changes
• Management, AI and management
• Conversion could take years
The news that industry veteran LIP-BU TAN will take over the management of Intel was celebrated by industry observers and investors. After a weak price development of the Intel share in recent years, hope for improvement under the new CEO had recently significantly pushed the share certificate.
UBS analyst Timothy praised the excellent connections of the new boss to China and Taiwan and trusts him to add value in the sense of shareholders. Tan should also strive to get investments from the US government and the possible key customers Nvidia, Apple, Qualcomm and others. The manager could finally separate product development and production of the group.
Stacy Rasgon from Bernstein Research was also optimistic, after all, Tan did not have to accept this job. The fact that, after supposed discrepancies with the then CEO Pat Gelsinger, he had withdrawn from the Intel Board of Directors in the last year – shows that he would not stand by and see how things fall apart. Rasgon sums up: “In view of his previous departure from the Board of Directors, we assume that Tan has a license to do everything that he thought has to be done. Why else would he have taken over the office?”
Intel CEO apparently concerns the problems directly
And Lip-Bu Tan seems to meet the expectations, because according to sources, he has already submitted concrete plans for a conversion of the struck chip manufacturer, who had already played a dominant role in the semiconductor market not long ago.
As the Reuters news agency writes, citing sources, Tan has provided in particular the Intel’s chip production methods and the AI area for a renovation. In these areas, he consider “significant changes”, so two people with the considerations of Tan. In doing so, he undertakes a comprehensive attempt to revive the battered technologic giants.
The new course includes a modernization of the production facilities that originally produced chips for Intel, but have now been switched to the production of semiconductors for external customers such as Nvidia, the news agency writes. These adjustments would have priority for Tan.
Intel Foundry Goes Ki
Without becoming too concrete, the sources against Reuters also report on a planned restructuring of the AI approach. In fact, the need to catch up in this area, because the fact that Intel missed the AI hype is one of the reasons that Intel has lost ground with other chip manufacturers in the race and lost its dominant position.
For Intel Foundry, where the chip manufacturer produces chips for companies such as Microsoft and Amazon, Tan wants to win new customers on a large scale. Intel’s contract manufacturing could be successful if TAN won at least two major customers for the production of large quantities of chip, industry analysts and Intel executives told Reuters.
In addition, the new boss is reportedly resuming the production of chips for AI servers and also has plans for areas that go beyond servers such as software, robotics and AI basic models. “After taking office, LIP-BU will use a lot of time to listen to the customer, partners and employees and to work closely with our management team in order to position the company for future success,” said an Intel spokesman Reuters in a prepared explanation.
Management level must tremble
Further adjustments that will probably come under Tan to Intel concern the management level. According to this sources, employees had already announced that the company had to make “difficult decisions”. For semiconductor expert Dylan Patel, the previous CEO Gelsinger was apparently the problem in this area that he had a “too nice way”. “He didn’t want to relieve as many middle management employees as it would have been necessary,” the expert was quoted by Reuters.
And difficult times could also come to the rest of the Intel workforce: After a job cut by 15,000 to almost 109,000 jobs, the workforce is likely to be targeted by Tan.
Adjustments are probably not promising at short notice
The plans of the new Intel boss will take some time until success show. In particular, the goal of getting closer to Nvidia in terms of AI chips and-like the AI giant-introducing an annual publication plan for AI chips, will take a convincing new architecture for a first AI chip, according to three industry sources and a person familiar with Intel’s progress-will only have to be developed at Reuters.
Editor finance.net
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