Intel faces a critical juncture as Lip-Bu Tan assumes leadership, inheriting a company grappling with historic losses and strategic missteps.
Tan, an experienced investor in the semiconductor industry, steps in following Intel's largest quarterly loss in Q3 2024.
Intel has lagged behind competitors like AMD and Nvidia in key areas, particularly AI chips for data centers.
The company struggles to transition to 10nm processes, while rivals offer 7nm and 5nm chips.
Tan faces the dilemma of continuing or abandoning the foundry strategy initiated by his predecessor, Pat Gelsinger.
The shift in US administration and potential changes in government support for semiconductor manufacturing add complexity.
Intel may seek to regain ground in AI chips, a crucial area for investors.