Intel’s New CEO Asks Customers for Criticism and Help in His Mission to Revive the Chip Giant

In his inaugural public appearance as the new chief executive of Intel Corp., Lip-Bu Tan made a bold appeal for honest feedback from the company’s customers during a conference held in Las Vegas. This marks the beginning of Tan’s mission to reinvigorate a company that has faced significant challenges in the competitive chip industry.

A Call for Brutal Honesty

During a 45-minute talk, Tan openly acknowledged the arduous path ahead for Intel. While he did not specifically address the critical question lingering among investors about the potential reorganization of the company’s product lines or the spinoff of its manufacturing business, he did emphasize the importance of engaging with customers. “Please be brutally honest with us,” Tan urged. He believes that obtaining “harsh criticism” will offer invaluable insights into improving the company’s offerings.

Drawing inspiration from personalities such as the American naturalist and transcendentalist Henry David Thoreau, Tan urged his audience to prioritize truth over comfort. “I want my customers, my team, my partners, and even my wife to give me the truth, then we can go together and fix problems and move forward as a team,” he stated.

Returning to Roots

A theme that resonated throughout Tan’s presentation was a commitment to returning Intel to its engineering-focused roots. “It is very clear that we have a lot of work ahead,” he said, reflecting on the early conversations he has had with customers since taking the helm. He expressed a deep-seated passion for Intel, acknowledging that he could not remain on the sidelines as the company struggled. “It was very hard for me to watch this struggle,” he shared.

Tan, who previously served on Intel’s board before unexpectedly stepping down in August, brings valuable experience from his prior role as CEO of Cadence Design Systems. His success in that position will guide his approach to Intel’s revival, where he plans to infuse a startup mentality into the company, allowing engineers the freedom to innovate.

Adopting a Team-oriented Culture

In a metaphor that struck a chord, Tan compared his vision for Intel’s culture to the teamwork exhibited by the Golden State Warriors basketball team. “This is the kind of team I would like to build at Intel,” he noted, highlighting the importance of collaboration and creativity among engineers.

As part of his strategic objectives for Intel, Tan mentioned the imminent release of a new chip, codenamed Panther Lake, which will be produced using Intel’s latest manufacturing technology known as 18a. He acknowledged the necessity for the company to strengthen its offerings in the data-center market and expressed dissatisfaction with Intel’s current positioning within the rapidly evolving artificial intelligence (AI) sector. “I have heard the feedback loud and clear. It is time to turn a new page and work toward a more competitive system. It won’t happen overnight, but I know we can get there,” Tan affirmed.

Reception from Analysts

The response from industry analysts was mixed. Stacy Rasgon from Bernstein Research characterized Tan’s address as “more like an apology than anything else.” He noted that Tan genuinely seems eager for candid feedback as he aims to steer the company through a multitude of challenges. However, Rasgon cautioned that Intel would face a “slog” while attempting to mend a variety of issues surrounding both product and process innovations, as well as customer satisfaction.

Commitment to Long-term Goals

Tan’s commitment to Intel appears steadfast. He recounted his experience leading Cadence through its own turnaround, where a temporary three-month CEO assignment extended into a 15-year tenure. “I will be here as long as the company needs me,” he assured, demonstrating a long-term vision for the revival of Intel.

Conclusion

As Lip-Bu Tan embarks on this challenging journey to rejuvenate Intel, his emphasis on open communication, customer feedback, and a return to innovation could pave the way for a revitalized company capable of competing on the global stage. The road ahead may be fraught with obstacles, but with determination and collaboration, Tan aims to steer Intel toward a promising future.