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SAN FRANCISCO (Reuters) – Intel’s new CEO, Lip-Bu Tan, is restructuring the leadership hierarchy within the semiconductor company, implementing a direct reporting system for key chip divisions, as revealed in a memo obtained by Reuters.
Additionally, Tan has promoted Sachin Katti, the head of the networking chip segment, to the position of chief technology officer and artificial intelligence leader.
This leadership overhaul marks Tan’s initial significant action since taking the helm last month, aimed at revitalizing the iconic Silicon Valley company which has faced numerous challenges in recent years. Under this new structure, the data center and AI chip group, along with the personal-computer chip segment, will report directly to Tan.
Previously, these groups were under the supervision of Michelle Johnston Holthaus, who maintains her role as head of Intel products but is set to expand her responsibilities.
Tan expressed a desire to engage closely with engineering and product teams to better understand their needs to enhance Intel’s offerings. In his memo, he noted, “As Michelle and I drive this work, we plan to evolve and expand her role with more details to come in the future.”
The restructuring initiative is part of Tan’s vision for a more streamlined Intel, following a tumultuous period for the company based in Santa Clara, California.
Intel’s former chief executive departed last year after clashes with the board about the company’s strategy amidst ongoing manufacturing and product challenges. One of the pressing hurdles they face is the emergence of Nvidia as a leading provider of AI chips.
Challenges in AI Strategy
Despite attempts to diversify through the acquisition of various AI chip startups, Intel struggled to establish a cohesive approach to compete with Nvidia. Recently, they decided to abandon their latest proposal, known as Falcon Shores. The responsibility of crafting a new AI strategy has now been assigned to Katti.
Tan’s communication highlighted that Katti will take on the expanded role of chief technology and AI officer. In this capacity, he will be responsible for shaping Intel’s overarching AI strategy and product roadmap, overseeing Intel Labs, and fostering relationships within the startup and developer ecosystems.
Katti, who is also a professor at Stanford University, will replace Greg Lavender, who is retiring from the company.
Expanding Government Relations
In addition, Intel is searching for a new head of government affairs, who will also report directly to Tan. This position is crucial given the complexities of global politics, especially with rising tariffs imposed on China during President Donald Trump’s administration — a region where Tan’s venture capital fund has significant investments.
Intel’s previous executive structure had included a range of business unit leaders, leaving technical experts further down the hierarchy. In the recent memo, Tan mentioned that three seasoned technical leaders—Rob Bruckner, Mike Hurley, and Lisa Pearce—would now report directly to him.
Tan emphasized that this shift aims to cultivate an engineering-centric environment, enhancing visibility into competitive needs. He remarked on the importance of simplifying management layers to foster a closer collaboration between executive leadership and engineering teams.
“Organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win,” expressed Tan. He identified a need to expedite decision-making processes and allow new ideas to flourish by eliminating unnecessary barriers that hinder effective execution.
Source
finance.yahoo.com