Intel CEO Lip-Bu Tan, who took over on Mar. 18, announced plans to spin off non-core assets and focus on developing custom semiconductors.

In his first public appearance at the Intel Vision conference on Mar. 31, Tan acknowledged challenges like the loss of key engineering talent, slow innovation, and issues with manufacturing.

He emphasized the need to adapt to customer needs, particularly as Intel’s chips for data centers and AI workloads have fallen short of expectations.

Tan made it clear that Intel is not planning to divest its core product and manufacturing operations but aims to strengthen both areas.

He highlighted the company’s commitment to custom parts for external clients, marking a shift from Intel’s traditional approach.

Despite initial optimism, Intel’s stock has since declined, reflecting broader challenges in the tech sector. Tan remains confident in the company’s recovery, though he acknowledged that addressing these issues will take time.

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