While We do not know if Intel’s financial problems can be solved Quickly, Wall Street analysts – and current and old employees – generally agree on Tan stages to take, unless a break. These steps include everything, from the work to the turbocharger of young Intel foundries.
Veteran of the semiconductor industry, Tan was appointed to its new role on March 12. Investors have applauded the news: Intel shares increased by more than 15% on the same day. Analysts liked Tan’s experience as a former CEO of Cadence Design Systems, a semiconductor design software company, and its experience on boards of directors of some 14 semiconductor companies, including Intel.
Now the difficult part.
Tan inherits a company whose financial losses have made it a target of taking control in recent months. Many Wall Street analysts and investors think that Intel – who is the only American cutting edge manufacturer – better to divide and sell their manufacturing activities in difficulty. Example: Stock increased on various Reports in the last months of potential offerssome of which would have been Worked with the support of the Trump administration.
Yahoo Finance interviewed four Wall Street analysts and nine current and old employees – including high -level executives. Employees have obtained anonymity due to non-disclosure agreements and fear of endangering future job opportunities. Some of these sources have said that Intel should be left in one piece, at least for the moment. This is because, if it is separated, Intel’s foundry would immediately have a bankruptcy, the analyst of Bernstein, Stacy Rasgon, told Yahoo Finance.
And the activity of Intel products, which designs the fleas, cannot so easily outsource rival manufacturers – Intel semiconductors are specially in accordance with its own internal manufacturing processes. Without forgetting, the financing of billions of billions of intel chips requires that it retains the majority property of its foundry.
Intel refused to make the lip Tan available to an interview, but told Yahoo Finance: “Lip-Bu spends a lot of time listening to customers and employees while he presents himself and works closely with our management team to position the company for future success.”
Here is what the sources of the company and Wall Street analysts said that it had to do to avoid a break.
Intel is one of the few chip manufacturersMake his own tokens.
On the design side, Intel A fell behind his rivals like AMD (Dmla) and, of course, Nvidia in an industry increasingly dominated by AI. On the manufacturing side, Intel has faced several times.
The former CEO, Pat Gelsinger, tried to increase Intel’s income by opening his internal manufacturing business – a “foundry” – to large -scale external customers. Foundries such as TSMC of Taiwan (TSM) Produce fleas for other companies. Intel historically produced fleas for its internal product company before Gelsinger launched Intel Foundry Services (IFS) in 2021.
Conclusion: Intel must attract more external customers. Analysts and former leaders have said that TAN industry connections should help, but its credibility alone will not guarantee success.
As Moor Insights & Strategy analyst said, Anshel Sag: “(I) F The results are good and companies are happy, they will increase their ability to” The Foundry.
According to Reuters, Tan seeks to stimulate the efforts of Intel fleas to compete with Nvidia and others.
Intel has escaped several attempts to grasp what would become the AI fleas market. In 2009, Intel Deleted a multi -year projectLarrabee, to develop an autonomous GPU like Nvidia. In 2017, Intel AMD Graphics Engineer HitRaja Koduri, to lead a second effort to a local GPU, who finally failed. And in January, Intel actually killed its most recent efforts, A high -end GPU AI called Falcon Shores.
The CEO of Intel Lip-Bu Tan inherits a company whose financial losses have made it a buyout in recent months. (Intel) ·Intel
“Intel has a very good financial organization, but the company sometimes takes these decisions which are too headed by the financial results of the first years,” said a former high -level executive. “You only learn deployment. If you intend to be long term on this market, you could just as easily have access to the market, even if it costs you throughout the first generation.”
The former and current Employees of Intel describe the company, whose members of the staff refer to themselves as “team blue”, as slow and bureaucratic. Former high -level leaders have said that the new CEO of the flea manufacturer will have to shake up business culture and cut intermediate management.
It is a difficult balance. The two current employees said that layoffs could reduce morale and risk slowing 18a progress. Tan has already said Intel has “difficult decisions” to come. One of the employees said their colleagues were preparing for a “huge amount” of layoffs potentially in the second or third quarter.
They said that their teams were already in an under-effective and that the intermediate management cuts would lead to the displacement of these teams, creating chaos.
One of the former high -level leaders said: “The depth of talents at Intel is immense, and the loyalty that people have is astounding”, adding later: “The answer lies in the inspiration of the people you have.”
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Laura Bratton is Yahoo Finance journalist. Follow it on Bluesky @ laurabratton.bsky.social. Send him an email to laura.bratton@yahoinc.com.
