Intel has fallen from its once-mighty position as a leader in the semiconductor industry, and its new CEO, Lip-Bu Tan, is openly acknowledging the difficult journey ahead. In a candid talk with employees, Tan revealed the harsh reality: Intel no longer ranks among the top semiconductor firms. 
This was a far cry from Intel’s dominance just a few decades ago, when it was a key player in the tech world.
Once hailed as America’s tech jewel, Intel is now grappling with a series of missteps. The company failed to capitalize on the AI boom, its consumer sector struggled to keep pace, and its foundry division didn’t meet expectations. These setbacks have compounded, leaving Intel in deep trouble, both in terms of financial losses and the erosion of its customer base to competitors.
Tan is determined to steer the company back on track, but he’s clear that a turnaround won’t be easy. To make Intel more agile, he has announced plans to reduce the workforce, believing that “a smaller Intel would move faster.” Additionally, while Intel once hoped to make waves in AI, Tan admits that the company is lagging behind. The most Intel will likely do in AI is integrate edge AI into its consumer processors, leaving the broader AI market to its competitors.
Another challenge for Intel is its foundry division. Tan confirmed that the company’s 18A process is currently being considered for internal use but may not be viable for external customers. With Intel’s ambitions of competing with TSMC essentially dashed for now, the company is pinning hopes on its 14A project, though its future remains uncertain. In the end, Team Blue is undergoing significant changes, and the public’s reaction to these shifts is likely to be mixed.