Intel Corporation has announced plans to divest some of its non-core business units under the leadership of newly appointed CEO Lip-Bu Tan. This announcement was made during his inaugural address at the Intel Vision 2025 conference held in Las Vegas, where Tan outlined his vision for the company's future.
Tan emphasized that Intel will concentrate on its core operations while spinning off non-essential divisions. "Moving forward at Intel, we will re-evaluate our strategy and create more capacity," he stated, highlighting the need to streamline operations to enhance efficiency and innovation.
While specific divisions earmarked for spin-off were not disclosed, Tan indicated that the focus would shift towards developing tailored semiconductors and enhancing Intel's foundry capabilities. He remarked, "The global demand for chip manufacturing is increasing, and it is essential to have supply chains that are adaptable, robust, and secure."
One of Tan's primary objectives is to attract and retain top engineering talent. He noted that Intel must return to its roots as "an engineering-first company," which has been crucial for fostering innovation.
Acknowledging Intel's recent struggles with innovation and market competition, Tan stated, "It has been a challenging time for Intel; we have lagged in innovation, which has made it difficult for us to adapt and satisfy your requirements." He aims to rectify past errors and regain customer confidence through a more agile and responsive organizational structure.
Intel has faced significant challenges in recent years, struggling to keep pace with competitors like NVIDIA and AMD, particularly in the burgeoning AI sector.