Intel Corp. chief executive officer Lip-Bu Tan stated that this company will spin off assets that are not central to its mission, and create new products, including custom semiconductors to better align itself with consumers.
Speaking at his first public appearance as head of the firm, at the Intel Vision conference in Las Vegas last Monday, March 31, Lip-Bu Tan noted that the brand needs to replace lost engineering talents and better attune production processes to meet the needs of potential customers. At the same time, he did not specify which parts of the company are no longer central to its future. According to him, Intel has a lot of hard work ahead. He also admitted that there are areas where the company has not lived up to expectations.
Intel has dominated the semiconductor industry for decades, but then demonstrated by its example that the greatness and leading positions achieved once will not necessarily remain in the future and at some point may become a bright memory from the past against the background of the darker reality of the new days. The company is currently making efforts to catch up with its competitors.
According to media reports, Intel’s management will have to decide what is the best form of the firm’s existence for a successful future. In this case, two possible options are implied, including maintaining the integrity of the brand or splitting up its major products and manufacturing operations.
Lip-Bu Tan has not signaled that he will seek to divest any part of the company. At the same time, he focused on making public statements about the challenges. According to him, Intels’ chips for data centers and artificial intelligence-related work are not good enough. He also stated that the company fell behind on innovation.
The appointment of Lip-Bu Tan was initially perceived through the prism of optimism and lured some investors back to stocks. At the same time, the company’s equities have since fallen in price. After the executive’s presentation, Intel’s stock value dropped by about 1.2% in extended trading.
As we have reported earlier, Intel Delays $28 Billion Ohio Chip Factories to 2030.
