TECH NEWS – Intel, which recently appointed a new CEO, will not be able to compete with Nvidia in the near future…

Intel’s new CEO, Lip-Bu Tan, will significantly reduce the company’s headcount. His goal is to get the company back on track and gain a foothold in the foundry and artificial intelligence industries. Lip-Bu is Intel’s first permanent CEO since Pat Gelsinger stepped down in December and will continue Gelsinger’s approach of focusing on the foundry business. The new leader takes the helm at a time when rumors are swirling that Intel is getting rid of its foundry business. However, in a letter to employees following the speculation, he put an end to the rumors by outlining his goal: “Intel must become one of the world’s leading foundry companies.

According to Reuters, Lip-Bu also spoke at a company meeting after his appointment. He has extensive experience in corporate affairs, having served on the board of directors last year. He would continue Gelsinger’s approach, but would lead Intel to be competitive in AI chips while also gaining a foothold in the foundry industry. Lip-Bu will focus on streamlining Intel’s middle management to be more agile and reduce costs, but there have already been significant layoffs within the company over the past year as costs have been controlled and quarterly losses have not been negligible.

In the stock market, Intel’s position appears to be reversing. Last year, the stock was still falling after the cuts, but since Lip-Bu’s promotion it has risen nearly 25% as investors have expressed confidence in the veteran executive’s ability to turn around ailing companies (and the prospect of a potential recovery in U.S. manufacturing has weighed heavily). In a letter to employees, he emphasized the need to make Intel a world-class foundry, and in his speech, he emphasized the need to make Intel a world-class foundry. Contract manufacturing has become increasingly urgent in the US amid the AI wave and the Trump administration’s push to have advanced chips made in America. Intel also received billions of dollars in funding under the Biden administration through the CHIPS and Science Act.

The layoffs are only a short-term goal, according to sources, because it takes several years to develop AI chips, so Intel is unlikely to design and manufacture something like this before 2027. Lip-Bu, however, disagrees with Gelsinger on the management structure, saying it has prevented Intel from focusing on customer satisfaction. But now his job will be to attract new customers to the foundry business. The company is currently working on the 18A chip manufacturing process, and if it is successful in mass production, the company will achieve technological parity with its main foundry rival, Taiwan’s TSMC.

It won’t be an easy task for the new leader, but let’s see what Intel can do under him.

Source: WCCFTech