MW Intel's new CEO asks customers for criticism and help in his mission to revive the chip giant

By Therese Poletti

In his first public appearance as Intel Corp.'s new chief executive, Lip-Bu Tan on Monday asked the chip giant's customers to continue to give him their criticism and honesty, as he moves forward with his plans to revive the company.

Tan did not directly address the big question that investors are wondering about: whether Intel $(INTC)$ will remain one company or whether he plans to spin off either its chip product lines or its separate manufacturing business. But in a 45-minute talk at an Intel customer conference in Las Vegas, Tan - with references ranging from Henry David Thoreau to Golden State Warriors basketball to some unheralded past Intel leaders - said that Intel has a big job ahead.

"It is very clear," Tan said, referring to many early conversations he has already had with customers, "that we have a lot of work ahead."

He reiterated a previous statement that he made when he was first named CEO, vowing that Intel will return to its roots as an engineering-focused company. Tan, 65, explained that he took on the job at this stage of his career because he loves Intel. "It was very hard for me to watch this struggle," he said. "I simply could not stay on the sidelines." Tan was previously on Intel's board and departed suddenly last August.

Also read: Intel's stock soars as Lip-Bu Tan named CEO. But he faces a tough task ahead.

He also said that one big lesson he learned in his turnaround of Cadence Design Systems $(CDNS)$, where he was previously CEO, was to really listen to feedback and input from customers.

"Please be brutally honest with us," he said. "I believe harsh criticism is more valuable." He also quoted Thoreau, the New England naturalist and transcendentalist, who asked for truth "rather than love, than money, than fame," with Tan saying he wants his customers, his team, his partners and even his wife to "give me the truth, then we can go together and fix problems and move forward as a team."

Some of his goals for Intel are to make the company feel more like a startup again, with more freedom for its engineers to be creative, and to be as tight as a basketball team, like the Warriors, who can often pass the ball without even looking at each other. "This is the kind of team I would like to build at Intel," Tan said.

He reiterated Intel's past statement that the first product from its newest manufacturing process, called 18a, will be a high-performing chip codenamed Panther Lake later this year. Tan also said he believes Intel needs a stronger offering in the data-center market, and that he's not happy with Intel's position in the AI arena.

"I have heard the feedback loud and clear," he said. "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."

"Frankly, it sounded more like an apology than anything else," said Bernstein Research analyst Stacy Rasgon, in a note to clients. He added that Tan "genuinely seems eager for 'brutally honest' feedback from customers and partners as he tries to right the ship; we hope he gets it." But Rasgon added that it is clear that Intel is "in for a slog as he tries to fix myriad issues around product and process, and attract and satisfy customers."

Tan noted that when he signed on to steer Cadence through its turn-around, he was only asked by the board to take over as CEO for three months. But he ended up staying on for 15 years. "I will be here as long as the company needs me," he said Monday.

-Therese Poletti

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March 31, 2025 19:06 ET (23:06 GMT)

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