Intel is in big trouble. The company’s stock crashed 60% last year, and they just kicked out their old CEO. Now they’ve brought in a new boss, Lip-Bu Tan, to fix the mess. But catching up to giants like Samsung, Nvidia, and TSMC won’t be easy. Let’s break down why this is such a tough job and what Tan needs to do.
Intel used to be the king of computer chips. But they got lazy. Back in the 2000s, they focused too much on making tiny improvements to old products instead of chasing big breakthroughs. They missed the boat on mobile chips and fell behind in new tech like AI. While rivals like Nvidia and AMD zoomed ahead with smart designs, Intel stuck to slow, outdated methods.
One huge mistake was ignoring advanced manufacturing tools. While TSMC and Samsung invested in cutting-edge machines, Intel hesitated. Now they’re stuck with old factories that can’t make chips as cheaply or efficiently. Their latest “18A” technology promises to catch up, but it’s years late. Tan says keeping Intel’s factories is key to staying competitive, but critics wonder if the company can afford it. The foundry business lost $13.4 billion last year alone.
Chip design is another problem. Nvidia and AMD design chips faster and smarter. Intel’s teams are bogged down by bureaucracy and slow decision-making. Tan plans to refocus on engineering and speed, but turning around a giant like Intel is like steering a cruise ship with a canoe paddle. Employees say the company culture resists change, and Tan will need to shake things up hard.
Investors are nervous but hopeful. When Tan got the CEO job, Intel’s stock jumped 15%. He’s a respected industry veteran with deep ties to companies like AMD and Nvidia. Some think he can turn Intel’s factories into a powerhouse by winning contracts from other chip designers. But others worry competing firms won’t trust Intel, since it also makes its own chips. Rumors of a TSMC partnership linger, but Tan insists on keeping everything under one roof.
The stakes are high for America. Intel is one of the last U.S. companies making advanced chips at home. If Tan fails, the country could lose its edge to Asia. Taxpayers are already funding Intel’s factories through government subsidies, and conservatives argue this should come with strict accountability. No more bailouts for poor management.
Tan’s biggest test will be fixing the culture. He left Intel’s board in 2024 over clashes about the company’s bloated workforce and slow pace. Now he’s back, promising humility and hard work. Employees say morale is low, and layoffs might be coming. Tan needs to cut waste without killing innovation—a tricky balance.
Can Tan save Intel? Maybe. But it’ll take years, and shareholders are impatient. The company’s fate doesn’t just matter to investors—it’s about national pride. Conservatives want a strong, self-reliant Intel that doesn’t rely on handouts or foreign rivals. Tan has the resume, but does he have the grit? The next few months will decide if America’s chip champion can rise again—or fade into irrelevance.
