Intel shook up everything after Lip-Bu Tan grabbed the top job from Pat Gelsinger. The computer chip giant struggled under its old leader who pushed a plan called IDM 2.0 that mixed design work with manufacturing. Gelsinger wanted Intel to beat Taiwan's TSMC at making chips for other companies through aggressive moves. The strategy failed badly as Intel's foundry business burned through billions of dollars without delivering results. Their 18A technology was supposed to launch in 2024 but got pushed back to early 2026.
Intel also missed the artificial intelligence gold rush that made competitors like NVIDIA and AMD rich. The company failed to build the right AI products that data centers wanted to buy. Tan had worked on Intel's board before but quit in 2024 because of too much red tape and bloated staff. He came back as chief executive in March 2025 with plans to fix the mess. The new leader wants Intel to act more like a startup with fewer managers and faster decisions.
Tan plans to cut thousands of jobs across different departments and countries. Intel will outsource more chip production to TSMC instead of trying to compete against them. The foundry division will focus on making chips for Intel's products rather than chasing outside customers. Workers can expect major changes as Tan restructures teams and cancels projects like the Falcon Shores AI chip lineup. Intel hopes these tough moves will stop the company from losing money.
Intel also missed the artificial intelligence gold rush that made competitors like NVIDIA and AMD rich. The company failed to build the right AI products that data centers wanted to buy. Tan had worked on Intel's board before but quit in 2024 because of too much red tape and bloated staff. He came back as chief executive in March 2025 with plans to fix the mess. The new leader wants Intel to act more like a startup with fewer managers and faster decisions.
Tan plans to cut thousands of jobs across different departments and countries. Intel will outsource more chip production to TSMC instead of trying to compete against them. The foundry division will focus on making chips for Intel's products rather than chasing outside customers. Workers can expect major changes as Tan restructures teams and cancels projects like the Falcon Shores AI chip lineup. Intel hopes these tough moves will stop the company from losing money.
