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TechnologyAI

Intel CEO Tan Starts Company’s Pivot: Spin Off Non-Core Assets

Ronald Kenyatta
Last updated: April 2, 2025 8:23 am
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Ronald Kenyatta
ByRonald Kenyatta
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Intel is set to divest assets that do not align with its primary mission, according to Bloomberg. CEO Lip-Bu Tan, who took over in mid-March following Pat Gelsinger’s retirement under strong encouragement, announced the move on March 31 at the Intel Vision conference. However, Tan did not specify which parts of the business would be affected or what he defines as Intel’s core focus.

Contents
Tan’s Challenge: Restoring Intel’s Position Amidst the AI BoomDelays in Intel’s Factory Construction Plans

As part of its growth strategy, Intel aims to strengthen its core business through AI and Software 2.0, Tan stated. Software 2.0 refers to an approach where generative AI enables coding without writing individual lines of code. The term, coined by computer vision expert Andrej Karpathy, describes how AI models can generate code using natural language inputs. It bears similarities to “vibe coding,” though Software 2.0 encompasses a broader range of generative AI applications.

Tan’s Challenge: Restoring Intel’s Position Amidst the AI Boom

Despite the surge in AI-driven demand for chips, Intel has struggled to capitalize on the trend. Gelsinger’s leadership in recent years left the company’s future uncertain, with some discussions even considering breaking up the company, according to Bloomberg.

Competitors like Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom were rumored as potential buyers. Intel’s divided focus between manufacturing and chip design may have given rivals an edge, allowing companies like TSMC to gain a significant lead. Meanwhile, NVIDIA has surpassed Intel in leveraging the AI revolution.

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Tan faces the challenge of steering Intel back to a competitive position. His leadership philosophy is to “under-promise and over-deliver,” he said. To achieve this, he plans to attract top engineering talent and enhance Intel’s chip foundry services. Bloomberg also reported that Intel is considering launching a custom semiconductor service for its clients.

Before stepping in as CEO, Tan served on Intel’s board and was previously the CEO of Cadence Design Systems, where he worked on design solutions and intellectual property agreements with Intel.

Delays in Intel’s Factory Construction Plans

Intel had intended to construct two cutting-edge semiconductor plants in Ohio, but these plans were postponed in late March. The delay was attributed to a mismatch between business needs and broader market demand, according to Naga Chandrasekaran, Intel Foundry Manufacturing’s executive vice president, chief global operations officer, and general manager.

TAGGED:artificial intelligenceAssetsbroadcomCEOCompanyscpu processorsintelNonCorenvidiaPivotSpinStartsTantsmc
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