In his first New Year’s message as Intel CEO, released in late December 2025, Lip-Bu Tan offered a candid reflection on a turbulent nine-month period that has already reshaped one of America’s most iconic technology companies. Since taking over in March 2025, Tan has overseen sweeping changes aimed at stabilizing Intel and preparing it for long-term growth, marking what he described as the foundation of a “New Intel.”
From Crisis Management to Growth Mode
Tan opened his letter by recalling the moment he assumed leadership, writing, “Just 9 months ago, I was deeply humbled to take on the incredibly important task of leading this iconic American company at a pivotal moment.” The message acknowledges that his early tenure was defined by urgency and hard decisions. According to Tan, Intel is now transitioning from “survival mode” to a disciplined “growth mode,” a signal meant to reassure investors after years of operational and financial struggles.
Aggressive Restructuring and Cost Discipline
A central theme of the letter is restructuring. Over the past year, Intel cut roughly 24,000 jobs nearly a quarter of its global workforce while flattening management layers and canceling major factory expansion plans in Poland and Germany. These moves were framed as necessary to restore capital discipline and focus resources on core priorities, particularly advanced semiconductor manufacturing in the United States.
Tan’s approach has earned him a reputation for decisive, sometimes brutal, cost-cutting. Investors have largely welcomed the strategy, seeing it as a long-overdue reset for a company that had lost ground to rivals like TSMC and AMD.
Reclaiming Intel’s Engineering DNA
Beyond financial discipline, Tan emphasized a cultural transformation. He expressed optimism that Intel is once again becoming an “innovative, data-driven, engineering-centric and execution-focused company.” This return to engineering fundamentals is critical as Intel bets heavily on its Intel 18A process node, widely viewed as the company’s best chance to regain manufacturing leadership.
A High-Stakes Political and Strategic Backdrop
Tan’s first year was anything but routine. His appointment triggered a 12% surge in Intel’s stock, reflecting market confidence in his turnaround credentials as former CEO of Cadence Design Systems. Political drama followed in August 2025, when former President Donald Trump publicly questioned Tan’s China-related investments, only to reverse course after a private Oval Office meeting.
Perhaps most significant was Intel’s landmark deal with the U.S. government, which invested approximately $8.9 billion for a near-10% equity stake. The move effectively positioned Intel as “too strategic to fail” under U.S. industrial and national security policy.
Looking Ahead to 2026
Despite reporting an $18.8 billion loss in 2024, Intel’s stock has climbed roughly 80% since Tan took charge. In closing his letter, Tan thanked investors and partners for their trust during what he called Intel’s “most challenging year in decades.” He positioned 2026 as the year Intel begins to “own its future,” focusing on shipping great products, advancing AI, and restoring long-term competitiveness.
