Intel CEO Tan Lip-Bu Plans Spin Off Non-Core Units

At the Intel Vision conference in Las Vegas, newly appointed CEO Tan Lip-bu announced a strategic shift for Intel, focusing on spinning off non-core assets to better align with customer needs and innovate in custom semiconductors. Tan emphasized the company's need to improve engineering talent, manufacturing processes, and product offerings, particularly in data center and AI-related chips, acknowledging that Intel has fallen behind in innovation. He proposed adopting a software-first approach, termed Software 2.0, which prioritizes solving customer problems before developing hardware solutions. Tan expressed a commitment to restore Intel's engineering roots and attract new talent, declaring that addressing past mistakes is crucial for the company's future. His remarks reflected a blend of optimism and acknowledgment of the challenges ahead for Intel as it seeks to regain its competitive edge in the semiconductor industry. Tan's strategy aims to establish a 'new Intel,' building on its historical strengths while adapting to current market demands.