Intel CEO Tan's Open Letter: Time For Talk Is Over, Foundry And Chip Execution
Intel's newly-appointed Chief Executive Officer (CEO), Lip-Bu Tan, isn't wasting any time introducing himself to shareholders and the public at large. In an open letter to investors as part of Intel's 2024 Annual Report, Tan offered up a blunt assessment of the company's past performance and outlined focal points going forward, which includes "building a world-class foundry."
Tan begins the letter by acknowledging that there are "clear challenges" facing Intel, but also "significant opportunities to accelerate our turnaround" efforts and improve in places where Intel has been lacking. He also says he's listening to feedback as part of a refocus on customers, which he says has been his top priority since accepting the role as CEO.
"We must turn our words into action and deliver on our commitments. I have been pleased to see the leadership team has already started driving the culture change needed to make this happen," Tan states in the letter.
"As CEO, I will continue to drive this transformation so that we move faster, work smarter and make it easier for customers to win with Intel. Most importantly, I will empower our people to do what they do best—push the limits of technology and innovate to achieve new breakthroughs," Tan adds.
Tan also indirectly acknowledges that part of the strategy going forward will be to continue on some of the paths laid out by his predecessor, Pat Gelsinger. For example, he called the work that Intel has been putting into a $10 billion "cost action plan" announced last year as playing an "important role," suggesting that he doesn't plan to reverse course. In fact, he referenced the 15% reduction in Intel's workforce, and said in no uncertain terms that Intel will "remain focused on executing" the broader plan to scale down operating expenses and capital expenditures.
"Intel’s future success requires an honest assessment of past performance. As I look back on the company’s 2024 results,
there is no sugarcoating the fact that we fell short of your expectations," Tan says in his letter. "There are many reasons for this, but there are no
excuses. I am focused on solutions that will enhance the long-term performance of the company and deliver for you, our
shareholders."
At the same time, Tan says he is committed to investing in future growth. A key part of that is focusing on the foundry side. In his letter, Tan says one of the first things he did after accepting the role as CEO was to analyze the progress of Intel 18A. According to Tan, it's "healthy and will enhance our competitiveness in the market."
Expanding on that, Tan says Panther Lake remains on track to launch in the second half of this year, followed by Nova Lake in 2026. He also says that Intel is in the final design phase with early Intel 18A external customer projects. Or put another way, Intel 18A and its related CPU designs are in very good shape.
The letter (PDF) mostly consists of high-level details, though it's nice to see Tan highlighting the important metrics and, at points, being blunt about Intel's past shortcomings. Now the real work begins. Or as Tan puts it, "Plain and simple, the time for talk is over."
