New Intel CEO says company will spin off non-Core units, tells customers to "be brutally honest with us"

• Intel CEO Lip-Bu Tan discusses the company’s future at its Vision conference
• Spinning off non-core assets and adding more engineers are a priority
• Tan wants to listen to customers, but “it won’t happen overnight”

Intel's new CEO and successor to Pat Gelsinger, Lip-Bu Tan, has announced plans to spin off non-core units to address the company’s recent struggles.

Tan emphasized there would be no quick fix, adding that his first week as CEO meeting with customers uncovered that Intel had fallen short of their expectations.

“Please be brutally honest with us,” he said at the chipmaker’s Vision event in Las Vegas.

Lip-Bu Tan announces long-term plans for Intel

Tan also revealed how Intel could become leaner, with more direct involvement from engineers after it lost its once dominant market position to rivals like Nvidia and AMD.

On the AI chip front, the company severely lags behind Nvidia, which has spent some time as the world’s most valuable company with a market cap of more than $3 trillion.

“We lost quite a bit of talent,” Tan said as he discussed plans to recruit more engineers and give them the “freedom to innovate from within” (via Reuters).

The CEO also wants to be more responsive to customer needs – creating custom semiconductors tailored to client specifications will be one such way.

At the event, Tan also indicated plans to spin off Intel’s non-core assets to focus on core operational strategies – there are no current plans to split Intel’s product and manufacturing units.

Intel stock rose in the days between the announcement and Tan’s appointment but has gradually faded again. Shares also fell 1.2% after he made these remarks at this week’s Vision conference, spelling out further uncertainty and a potential drop in confidence.

“It won't happen overnight, but I know we can get there,” he added.

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