When Lip-Bu Tan stepped into Intel’s top leadership role in March 2025, he inherited a company facing one of the most difficult periods in its history. Once the dominant force in semiconductors, Intel had spent years losing momentum as rivals gained strength in key markets and the global chip landscape shifted dramatically.
Competitors such as Qualcomm, Nvidia, and AMD had eroded Intel’s long-standing advantage, while Taiwan’s TSMC established an overwhelming lead in advanced chip production, manufacturing 90% of the world’s most sophisticated processors. As a result, Intel’s own manufacturing division found itself struggling to remain competitive.
Tan acknowledged the scale of the challenge soon after taking charge. Speaking during an earnings update in April 2025, he cautioned investors that rebuilding the company would take time and that simple solutions were unlikely.
The 66-year-old executive, who previously led Cadence Design Systems for more than a decade, has largely avoided the spotlight since becoming CEO. That made his appearance at Computex in Taipei especially noteworthy. The annual technology exhibition, which has attracted increasing attention during the AI boom, drew a large audience eager to hear Intel’s plans.
Much of the interest centered on central processing units (CPUs). These chips have long served as the primary processing engines in personal computers and servers. While graphics processing units (GPUs) have become critical for training AI systems, CPUs are gaining renewed importance because of their role in running trained models and supporting AI-powered applications.
Industry observers believe that shift could work in Intel’s favor. TriOrient’s VP Dan Nystedt noted that Intel’s extensive CPU business could become a major advantage as demand grows for inference workloads, which allow AI systems to perform real-world tasks.
Even Nvidia Chief Executive Jensen Huang highlighted the evolving role of CPUs during a presentation in Taipei, describing them as increasingly central to modern AI infrastructure. Tan later told reporters that customer requests for additional CPU supply had increased significantly in recent weeks.
To capitalize on that opportunity, Intel has launched a sweeping restructuring effort. The company has reduced its workforce, delayed some European factory expansion plans, streamlined management layers, and sold selected assets. Tan has also recruited executives from leading chip firms and strengthened relationships with major technology partners.
Government support has added another boost. Last year, the U.S. government invested $8.9 billion in the company to strengthen domestic semiconductor production.
Despite the progress, significant obstacles remain, particularly within Intel’s manufacturing business, where attracting customers and improving production performance continue to be major priorities.
Still, analysts say the company has moved beyond crisis mode. According to Digitimes Research analyst Chiayang, Tan has succeeded in stabilizing Intel and putting the company on a path toward recovery.
As leading U.S. tech companies like Intel thrive, they are likely to open up opportunities for other ecosystem players like Datavault AI Inc. (NASDAQ: DVLT) that would prefer to use domestically-developed software and hardware in their own operations.
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