Intel 's new CEO Lip-Bu Tan delivered a stark assessment of the company's position in the semiconductor industry , telling employees in a global video broadcast that Intel has fallen from its former dominance. "Twenty, 30 years ago, we are really the leader," Tan said during the session, according to OregonLive. "Now I think the world has changed. We are not in the top 10 semiconductor companies."
The blunt remarks came as Intel began implementing massive layoffs worldwide, cutting 529 jobs in Oregon alone with thousands more expected globally. Tan's comments, reviewed by OregonLive, represent a rare glimpse into his strategic thinking since taking over from ousted CEO Pat Gelsinger in March.
AI race already lost, says Intel CEO
The CEO acknowledged Intel's struggles extend beyond traditional markets into the crucial artificial intelligence sector. "On training I think it is too late for us," Tan admitted, referring to Nvidia 's commanding position in AI chip development. He described Nvidia's market position as "too strong" to challenge directly.
Intel's market capitalization has plummeted to around $100 billion—roughly half its value from 18 months ago—while Nvidia recently became the first company to breach the $4 trillion threshold. An Intel spokesperson later clarified that Tan's "top 10" comment referred specifically to market value rather than technological capabilities.
Intel’s manufacturing push faces uncertain future
Despite the challenges, Tan outlined Intel's path forward through its upcoming 18A manufacturing process and a shift toward edge AI applications. "Our number one priority is to make sure that our 18A is robust for our internal customer," he said, as reported by OregonLive.
The CEO emphasized that Intel's turnaround would be a "marathon," requiring the company to become more agile like competitors AMD and Nvidia. "We have to be humble," Tan told employees, urging them to listen to customers and respond to their needs.
Intel plans to focus on bringing AI capabilities directly to PCs and exploring agentic AI—systems that can operate independently without constant human direction. Tan hinted at additional executive hires, saying "Stay tuned. A few more people are coming on board."
The blunt remarks came as Intel began implementing massive layoffs worldwide, cutting 529 jobs in Oregon alone with thousands more expected globally. Tan's comments, reviewed by OregonLive, represent a rare glimpse into his strategic thinking since taking over from ousted CEO Pat Gelsinger in March.
AI race already lost, says Intel CEO
The CEO acknowledged Intel's struggles extend beyond traditional markets into the crucial artificial intelligence sector. "On training I think it is too late for us," Tan admitted, referring to Nvidia 's commanding position in AI chip development. He described Nvidia's market position as "too strong" to challenge directly.
Intel's market capitalization has plummeted to around $100 billion—roughly half its value from 18 months ago—while Nvidia recently became the first company to breach the $4 trillion threshold. An Intel spokesperson later clarified that Tan's "top 10" comment referred specifically to market value rather than technological capabilities.
Intel’s manufacturing push faces uncertain future
Despite the challenges, Tan outlined Intel's path forward through its upcoming 18A manufacturing process and a shift toward edge AI applications. "Our number one priority is to make sure that our 18A is robust for our internal customer," he said, as reported by OregonLive.
The CEO emphasized that Intel's turnaround would be a "marathon," requiring the company to become more agile like competitors AMD and Nvidia. "We have to be humble," Tan told employees, urging them to listen to customers and respond to their needs.
Intel plans to focus on bringing AI capabilities directly to PCs and exploring agentic AI—systems that can operate independently without constant human direction. Tan hinted at additional executive hires, saying "Stay tuned. A few more people are coming on board."
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