Intel to Spin Off Non-Core Assets

In his first public appearance as Intel CEO, Lip-Bu Tan said Monday that the once-dominant chipmaker would spin off non-core assets, though he offered no specifics.

“I love this company,” he said during his keynote address at the Intel Vision event in Las Vegas. “It was very hard for me to watch it struggle. I simply cannot stay on the sidelines knowing that I could help turn things around. I also fully recognize that it won’t be easy. It has been a tough period for quite a long time . We fell behind on innovation, and as a result, we have been too slow to adapt and meet your needs. You deserve better, we need to improve, and we will.”

Tan noted that Intel had historically engaged in an “inside out” approach, where it designed hardware and then figured out what software was necessary to make it work. But the world has changed, he said, and Intel would now use a software-first mindset called Software 2.0. It will start with the problems its customers want to solve and the workloads required to meet those needs, and it would work “backward” from that to create the hardware.

Tan also said that Intel would use AI to accelerate the development of new compute architectures, “purpose built silicon” that will include future x86 designs. And at a higher level, he indicated that Intel would move forward with products–meaning chips and other hardware–and with its foundry business. Both were “an immediate priority,” he said. He also hopes to attract new engineering talent to Intel and continue the turnaround that started under his predecessor, Pat Gelsinger.

“We have a lot of hard work ahead,” he said. “My motto is very simple: Under promise and overdeliver. I will not be satisfied until we delight all of you.”