Intel Corp's INTC Lip-Bu Tan made bold promises about the company's future during his first public speech as CEO on Monday, highlighting a major cultural overhaul and signaling potential support from the Donald Trump administration.
What Happened: Tan, who took over as CEO earlier in March, focused on a cultural transformation at Intel, stressing the need to cut down on bureaucracy, which he believes stifles innovation, reported the Financial Times.
“Bureaucracy kills innovation,” Tan said during the speech at a conference in Las Vegas.
He made it clear that one of his top priorities would be to recruit top talent and build stronger relationships with key customers, while simplifying Intel's operations.
Tan also highlighted that the Trump administration is prepared to assist Intel, as the government intends to maintain U.S. semiconductor leadership.
“They are asking me: what can we help with? And definitely, I will come to get their help to do what we need to do,” Tan said, signaling a collaborative effort to strengthen the company's position in the competitive chip market.
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Why It Matters: Intel's leadership has struggled in the past few years, falling behind competitors like Taiwan Semiconductor Manufacturing Company TSM in chip production and Nvidia Corporation NVDA in AI chip development.
In his inaugural letter to shareholders, Tan spoke about aligning spending with market demand, a strategy that includes maintaining Intel’s product business and contract chip manufacturing unit, a vision initially set by former CEO Pat Gelsinger. This approach also involves cost-cutting measures, including a 15% workforce reduction.
Tan’s strategy also extends to rejuvenating Intel’s chip design and expanding its foundry business, with potential commitments from major clients like Nvidia and Broadcom Inc. AVGO.
Price Action: Intel's stock has climbed 12.31% since January, but the stock has declined almost 49% over a 12-month period, as per Benzinga Pro data.
According to Benzinga Edge Stock Rankings, Intel (INTC) holds a 3.54% growth rating. Want to see how it compares to other companies? Click here for the full analysis.
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