Tan, who infamously resigned from Intel’s board last year in protest over the company’s lacklustre AI strategy, returned to lead the company last month as it finds itself in the mire.
“Please be brutally honest with us,” he told attendees. “I believe harsh feedback is most valuable.”
In a heartfelt admission, Tan said he found it difficult to stand by and watch Intel struggle: “I simply cannot stay on the sideline knowing that I could help turn things around.”
Tan acknowledged the significant challenges the company faces. “It has been a tough period for quite a long time for Intel,” he said. “We fell behind on innovation. As a result, we have been too slow to adapt and to meet your needs.”
But he used his keynote to draw a line in the sand and set a new direction: one rooted in engineering excellence, innovation, and a renewed customer focus.
“As CEO, my No. 1 priority has been spending time with customers,” Tan said. “Under my leadership, Intel will be an engineering-focused company.”
Despite recent layoffs affecting around 15% of Intel’s workforce, Tan said one of his top priorities was to recruit and retain top engineering talent.
He criticised the company’s previous internal culture, saying staff hadn’t had the “room to develop and grow” ideas, and stressed the need to rebuild trust not just with customers but with employees as well.
Tan placed Intel’s foundry business at the centre of his turnaround strategy. The long-struggling unit was touted as a potentially sellable asset, but Tan is positioning it as a core part of Intel’s future.
“Global demand for chip production is growing, and you need supply chains that are flexible, resilient, and secure,” he said. “Intel Foundry plays a crucial role. We will continue to advance our foundry strategy to meet our needs.”
He confirmed he would work directly with the foundry team to refine its strategy and identify growth and differentiation opportunities.
Beyond the existential issues, the CEO confirmed Intel’s long-anticipated 18A process technology remains on schedule, with high-volume production expected in the second half of the year in line with its upcoming Panther Lake processors
“We have a lot of hard work ahead,” Tan admitted, addressing the audience of customers. “There are areas where we’ve fallen short of your expectations.”
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