Intel CEO outlines turnaround plan to improve yields, grow foundry

Intel CEO LipBu Tan has outlined a significant corporate turnaround focused on engineering discipline, improved manufacturing yields, and positioning the company as a strategic U.S. semiconductor foundry. Since taking leadership in March 2025, Tan has implemented a more direct management style and set ambitious internal goals to accelerate product development and attract external customers.

A central element of Tan’s strategy involves instilling a stricter engineering culture. He has mandated that new chip designs must be ready for mass production on their first silicon revision, known as A0, a standard he says was not previously met. Tan stated that achieving first-pass success is now a critical company objective, with serious consequences for teams that require multiple revisions. He acknowledged this shift initially surprised engineers but emphasized his personal involvement in reviewing designs and certifying intellectual property before manufacturing.

Tan pointed to tangible progress in manufacturing, specifically with the company’s 18A process technology. He said that upon his arrival, 18A yields were subpar, but after collaborating with ecosystem partners, the node is now...