Intel changed how it makes products after losing money for several years. The computer chip company requires all new products to earn at least 50 percent profit margins. CEO Lip Bu-Tan leads the new business strategy for better financial results. Products CEO Michelle Johnston explained the strict rules at a technology conference. Engineers cannot work on projects that fail to meet the profit requirements.
The company struggled with artificial intelligence chips and consumer processors recently. Arrow Lake processors disappointed customers and sales targets. Gaudi AI products never gained market attention from buyers. Intel lost revenue across multiple business segments during recent quarters. New leadership wants to focus only on profitable product development.
Intel plans to use both its factories and TSMC for future chip production. Nova Lake processors will come from multiple manufacturing sources for better results. The dual-sourcing strategy replaces former CEO Gelsinger's factory-focused approach. Samsung also provides manufacturing services for certain Intel products. Company executives believe this flexibility improves product quality and delivery times.
The company struggled with artificial intelligence chips and consumer processors recently. Arrow Lake processors disappointed customers and sales targets. Gaudi AI products never gained market attention from buyers. Intel lost revenue across multiple business segments during recent quarters. New leadership wants to focus only on profitable product development.
Intel plans to use both its factories and TSMC for future chip production. Nova Lake processors will come from multiple manufacturing sources for better results. The dual-sourcing strategy replaces former CEO Gelsinger's factory-focused approach. Samsung also provides manufacturing services for certain Intel products. Company executives believe this flexibility improves product quality and delivery times.
