“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.

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CEO Lip-Bu Tan commented that Intel is no longer in the top 10 semiconductor companies in the world. Photo: Straits Times

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. The "Top 10" comment was made 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 worldwide. Many more could lose their jobs in the coming weeks as Intel closes its automotive business, outsources its marketing department, and cuts up to a fifth of its manufacturing jobs. Most other divisions will see similar cuts. 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 had lost market share in the data center and that while its personal computer business was “doing a little better,” he said Intel needed to improve to meet the demands of advanced computing.

Intel’s troubles were exacerbated by the rise 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. Mr. Tan said 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. Mr. Tan believes this is an area with huge potential to capture.

(According to Oregon Live)

Thousands of Intel factory workers face the risk of losing their jobs as early as July. A leaked internal Intel memo shows that about 1/5 of factory workers worldwide will be laid off, with the state of Oregon (USA) taking the hardest hit.

Source: https://vietnamnet.vn/ceo-intel-thua-nhan-su-that-cay-dang-truoc-toan-the-nhan-vien-2420780.html