Determined New Intel CEO Announces Workforce Restructuring... Foreshadows Aggressive Foundry Sales

Lipbu Tan Expected to Attract Foundry Customers
"Tough Decisions" Loom for Middle Management Restructuring

The new head of Intel, which is experiencing management difficulties, has unveiled an aggressive foundry (semiconductor contract manufacturing) sales plan along with workforce reductions. The plan is to officially launch the first central processing unit (CPU) using the cutting-edge 1.8-nanometer process in January next year, surpassing the 2-nanometer process that Samsung Electronics and TSMC are preparing for mass production this year.

According to U.S. information technology (IT) specialized media on the 17th (local time), Intel recently revealed the roadmap for the Panther Lake laptop CPU at a product briefing held in China.

It is Intel's next-generation laptop CPU equipped with artificial intelligence (AI) and the first product to be produced using the 1.8-nanometer process. The 1.8-nanometer process is more advanced than the 3-nanometer process currently mass-produced by the world's largest foundries, TSMC and Samsung Electronics.

Riboo Tan, Newly Appointed Intel Chief Executive Officer (CEO)

Intel plans to officially announce the new CPU in January next year. Although the operation of the 1.8-nanometer process, originally scheduled for the end of this year, was expected to be delayed until mid-next year due to yield issues, it is now expected to be somewhat earlier than that.

Pat Gelsinger, Intel's new CEO, plans to focus on improving performance by securing new customers in the foundry (semiconductor contract manufacturing) sector. Shortly after his appointment, he expressed his determination to elevate the foundry division, which operates separately from the chip design business, to a world-class level.

In particular, to attract large-scale new customers, Intel plans to improve the chip manufacturing process to make it easier for potential clients such as NVIDIA to use. Industry insiders believe that Intel's foundry can succeed if it secures two or more large customers that produce chips in large volumes.

Along with this, workforce restructuring at the middle management level is also expected. CEO Gelsinger, who was a member of Intel's board until August last year, views the company's middle management as bloated. After being appointed CEO, he reportedly told employees at a town hall meeting that "tough decisions will have to be made."

Industry expert Dylan Patel commented on the possibility of restructuring, saying, "The big problem with former CEO Pat Gelsinger, who resigned last December, was that he was 'too kind,'" and added, "He did not want to lay off middle managers."

Intel's ultimate goal is to continuously release AI chips to the market like NVIDIA. However, the development of new architectures for AI chip manufacturing is expected to take until at least 2027.