Major expansion in foundry services, anchored by advanced process technologies like the critical 18A node.
Shift to a software-first strategy to better align Intel’s hardware with AI-driven workloads.
Emphasis on developing custom, purpose-built silicon to meet industry demands.
Lip Bu Tan, Intel’s newly appointed CEO, has laid out an ambitious and detailed vision aimed at revitalising the iconic semiconductor giant. Speaking at Intel Vision 2025, Tan underscored a clear commitment to restoring the company’s engineering prowess, rebuilding customer trust, and strategically positioning Intel at the forefront of technological innovation. Lip Bu Tan was previously part of the Board of Directors for two years before resigning last year.
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Restoring Customer Trust and Delivering Excellence
Tan emphasised that rebuilding customer trust is his primary goal, noting that Intel must adopt a more customer-centric approach. Reflecting on his leadership philosophy, Tan said, “My motto is very simple under promise and over deliver. I will not be satisfied until we delight all of you.” This candid acknowledgment of Intel’s past performance issues underlines Tan’s straightforward and humble leadership style, shaped by years of customer engagement and feedback. Tan intends to ensure Intel consistently meets and exceeds expectations by delivering high-quality products on time, stating clearly that quality and timely delivery are non-negotiable aspects of his strategy.
Renewing an Engineering-First Culture
Central to Tan’s strategy is a renewed focus on engineering excellence. Recognising Intel’s historical strengths, Tan highlighted that the company’s success hinges upon attracting and retaining top engineering talent. He acknowledged the talent drain Intel has experienced in recent years and pledged to create a culture that fosters innovation, collaboration, and empowerment among engineers. “I will also put resources behind people and ideas where we can see the opportunity to innovate,” Tan stated, “Most importantly, we will simplify the way we work. Bureaucracy kills innovation. I see how small focused teams move very fast and innovate, and take on incumbents. And we’re going to practice that in Intel.”
To facilitate this cultural shift, Tan plans to implement significant internal reforms, including simplifying processes and cultivating a startup-like agility. Drawing from his experience leading Cadence Design Systems, Tan emphasised the value of nimble, highly focused teams capable of rapid innovation and market responsiveness.
Refocusing Core Business and Strategic Spin-Offs
One of Tan’s critical strategic initiatives involves sharpening Intel’s focus by divesting non-core business units. This targeted refocusing is designed to streamline operations and allocate resources more effectively towards core areas such as CPUs, artificial intelligence (AI), and advanced chip manufacturing. Tan described these moves as essential for positioning Intel to capitalise on emerging technology trends, particularly around AI-driven computing.
AI and Software-First Product Development
Tan explicitly addressed the transformative impact of artificial intelligence, indicating a major strategic pivot to a software-first development approach. Traditionally known for hardware-first designs, Intel under Tan’s leadership will shift towards a model where software requirements drive hardware innovation. “Going forward, we will start with the problem i.e. what you(consumers) are trying to solve and the workloads that you need to handle,” he explained, “then work backwards from there. This requires embracing the ‘software first’ design mindset.”
Highlighting his background in venture capital and technology investment, Tan referenced his successful investments in AI and related software technologies, suggesting Intel would benefit significantly from these insights. He underscored the importance of AI as a transformative force across industries, reshaping how computing infrastructure is developed and utilised.
Custom Silicon and Advanced X86 Solutions
Another strategic pillar under Tan’s leadership is the development of custom, purpose-built silicon optimised for specific workloads, especially in AI applications. During his keynote, Tan revealed ongoing collaborations with major data centre and AI platform providers, aiming to define the next generation of X86-based solutions tailored precisely to industry requirements. “I also believe we can play an important role in developing custom silicon that is tailored for specific applications,” Tan emphasised, further underscoring his commitment to innovation-driven partnerships.
Expansion and Advancement of Foundry Services
Tan reinforced the importance of Intel’s foundry business by stating, “Foundry is a service business and that is built on the foundational principle of trust. Every Foundry customer has their own unique design methodology and style of design.” He underscored the need for flexible, resilient, and secure chip manufacturing. He outlined ambitious goals for expanding Intel’s foundry services, including accelerating the development and deployment of advanced process technologies such as the critical 18A node. Tan set clear expectations for the high-volume production of Intel’s Panther Lake processors on the 18A node later this year.
The foundry services, according to Tan, will focus heavily on customer-specific design methodologies, recognising the unique needs and preferences of different customers. Drawing from his Cadence days, Tan understands the importance of tailored services in delivering optimised yield and performance.
Prioritising Energy Efficiency and Cutting-Edge Technologies
Addressing industry-wide concerns about energy consumption, particularly given the explosive growth of AI, Tan highlighted Intel’s commitment to driving advancements in energy efficiency. He referred to his background in nuclear engineering, mentioning his current advisory role at MIT and emphasising the urgency of developing technologies that tackle growing power constraints head-on.
Tan specifically pointed to innovative solutions such as advanced cooling technologies, photonics, and next-generation materials like Gallium Nitride, Silicon Carbide, and Indium Phosphide. These technologies are expected to underpin future Intel products, significantly enhancing their performance and energy efficiency.
A Long-Term Commitment
In his closing remarks, Tan expressed his deep personal commitment to Intel’s future, reinforcing that his tenure as CEO is driven by passion rather than necessity. He stated unequivocally, “I will be here as long as the company needs me,” demonstrating a steadfast dedication to achieving long-term, sustainable success.
Tan’s strategic vision for Intel is ambitious, clear, and deeply rooted in his extensive experience and passion for innovation. His message at Intel Vision 2025 emphasised humility, responsiveness, and rigorous execution, providing a clear roadmap intended to reposition Intel as a dominant, agile, and innovative leader in the semiconductor industry.
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Mithun Mohandas
Mithun Mohandas is an Indian technology journalist with 14 years of experience covering consumer technology. He is currently employed at Digit in the capacity of a Managing Editor. Mithun has a background in Computer Engineering and was an active member of the IEEE during his college days. He has a penchant for digging deep into unravelling what makes a device tick. If there's a transistor in it, Mithun's probably going to rip it apart till he finds it. At Digit, he covers processors, graphics cards, storage media, displays and networking devices aside from anything developer related. As an avid PC gamer, he prefers RTS and FPS titles, and can be quite competitive in a race to the finish line. He only gets consoles for the exclusives. He can be seen playing Valorant, World of Tanks, HITMAN and the occasional Age of Empires or being the voice behind hundreds of Digit videos. View Full Profile
