Intel CEO Lip-Bu Tan Says Company Will Spin Off Non-Core Units (msn.com)
(Monday March 31, 2025 @11:30PM (msmash)
from the moving-forward dept.)
- Reference: 0176886647
- News link: https://slashdot.org/story/25/04/01/0036239/intel-ceo-lip-bu-tan-says-company-will-spin-off-non-core-units
- Source link: https://www.msn.com/en-us/money/other/intel-ceo-lip-bu-tan-says-company-will-spin-off-non-core-units/ar-AA1C1zQs
Intel Chief Executive Officer Lip-Bu Tan said the chipmaker will [1]spin off assets that aren't central to its mission and create new products including custom semiconductors to try to better align itself with customers. From a report:
> Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to meet the needs of potential customers, Tan said. Speaking at his first public appearance as CEO, at the Intel Vision conference Monday in Las Vegas, Tan didn't specify what parts of Intel he believes are no longer central to its future.
>
> "We have a lot of hard work ahead," Tan said, addressing the company's customers in the audience. "There are areas where we've fallen short of your expectations." The veteran semiconductor executive is trying to restore the fortunes of a company that dominated an industry for decades, but now finds itself chasing rivals in most of the areas that define success in the field. A key question confronting its leadership is whether a turnaround is best served by the company remaining whole or splitting up its key product and manufacturing operations. Tan gave no indication that he will seek to divest either part of Intel. Instead, he highlighted the problems he needs to fix to get both units performing more successfully. Intel's chips for data center and AI-related work in particular are not good enough, he said. "We fell behind on innovation," the CEO said. "We have been too slow to adapt and meet your needs."
[1] https://www.msn.com/en-us/money/other/intel-ceo-lip-bu-tan-says-company-will-spin-off-non-core-units/ar-AA1C1zQs
> Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to meet the needs of potential customers, Tan said. Speaking at his first public appearance as CEO, at the Intel Vision conference Monday in Las Vegas, Tan didn't specify what parts of Intel he believes are no longer central to its future.
>
> "We have a lot of hard work ahead," Tan said, addressing the company's customers in the audience. "There are areas where we've fallen short of your expectations." The veteran semiconductor executive is trying to restore the fortunes of a company that dominated an industry for decades, but now finds itself chasing rivals in most of the areas that define success in the field. A key question confronting its leadership is whether a turnaround is best served by the company remaining whole or splitting up its key product and manufacturing operations. Tan gave no indication that he will seek to divest either part of Intel. Instead, he highlighted the problems he needs to fix to get both units performing more successfully. Intel's chips for data center and AI-related work in particular are not good enough, he said. "We fell behind on innovation," the CEO said. "We have been too slow to adapt and meet your needs."
[1] https://www.msn.com/en-us/money/other/intel-ceo-lip-bu-tan-says-company-will-spin-off-non-core-units/ar-AA1C1zQs
Stock Buybacks for the L! (Score:2, Insightful)
by Anonymous Coward
Man, can you just imagine if Intel had kept plowing money into R&D instead of blowing $108 billion on stock buybacks and trying to coast on past successes? God if only someone could have seen the failure coming from decades away ...
Short of NICs and CPUs, what else has succeeded? (Score:3)
Short of NICs and CPUs, what else has Intel done well with? I remember decades ago them trying to do switches and routers. They have a history of products they start only to abandon.
Re: (Score:3)
They made some piss-poor wifi cards at one point
Re: (Score:3)
Also some astonishingly bad cell phone modems.
I hope the GPUs survive. They've been coming along nicely and if I could get a B580 for MSRP online I'd be up for it, but I don't have it in me to fight the scalpers.
"nicely" (Score:1)
In other words, Intel is selling every card at a loss because they don't have designs advanced enough to compete with the big dogs. AMD's gamer GPU division is barely worthwhile as a corporate endeavor, what keeps it going is (a) a hope that they might return to the marketshare they used to have and (b) that their designs feed into the Sony/Microsoft console projects and the APUs. (Note that AMD basically does not have a workstation lineup anymore ... their data center designs are different.) Intel cannot p
Re: (Score:3)
Good question. I remember IC chips with Intel on the label. I had an Ethernet to parallel printer box long ago.
It's a short list isn't it.
Re: (Score:3)
I fondly remember their motherboards back in the day. They were a bit more expensive but rock solid. I still have a few of those motherboards and they run perfectly. In fact, I don't remember ever coming across one with issues.