“Twenty, thirty years ago, we were really the leader,” Lip-Bu Tan said in a video broadcast to Intel employees. “Now, I think the world has changed. We are no longer among the top 10 semiconductor companies.”
He said customers are underestimating Intel and the company is too far behind to catch up with Nvidia, which just hit $4 trillion in market capitalization.
Intel’s turnaround will be a “marathon,” Mr. Tan said. He described the layoffs, which began this week, as an effort to make Intel more like rivals like Nvidia, Broadcom and AMD, which he said are more nimble and flexible. He urged employees to be humble, listen to customers and respond to their needs.
An Intel spokesman said Mr. Tan's comments about Intel's position in the chip industry were referring to market value, not technology.
However, according to OregonLive, the topic of valuation did not come up during the CEO's 20-minute conversation. He made the "Top 10" comment in response to a question about Intel's culture.
The reality is that Intel’s position in the chip industry has been severely eroded. The company’s market value is around $100 billion, half what it was 18 months ago.
The Q&A with Mr. Tan coincided with the start of thousands of layoffs at Intel worldwide. Many more jobs are likely to be lost in the coming weeks as Intel shuts down its automotive business, outsources its marketing department and cuts up to a fifth of its manufacturing jobs. Most other divisions will follow suit. Mr. Tan believes a leaner Intel will move faster.
“The whole decision-making process was so slow and in the end no one decided anything,” Mr. Tan said.
Intel is struggling to catch up in nearly every aspect of its business, thanks to nearly a decade of technological setbacks. Intel is at a disadvantage in its core markets of personal computers and data centers.
Mr. Tan acknowledged that Intel has lost market share in the data center and that while its personal computer business is “doing a little better,” he said Intel needs to improve to meet the demands of advanced computing.
Intel’s troubles were exacerbated by the advent of AI, which runs on Nvidia’s GPU processors. Intel doesn’t have its own advanced GPUs and has essentially been left out of the wave of chips that train AI systems. Tan says Nvidia is too strong in this area.
As a result, Intel will focus on edge AI, bringing AI directly to personal computers and other devices instead of operating in centralized computers.
Intel also wants to explore agent AI, a nascent field in which AI operates independently without constant human direction. Tan believes this is an area with huge potential to be captured.
(According to Oregon Live)
Source: https://vietnamnet.vn/ceo-intel-thua-nhan-su-that-cay-dang-truoc-toan-the-nhan-vien-2420780.html
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