Intel to fire several employees, company says need to make tough decisions

Intel's incoming CEO Lip-Bu Tan has considered significant changes to its chip manufacturing methods and artificial intelligence strategies ahead of his return to the company on Tuesday, two people familiar with Tan's thinking told Reuters, in a sweeping bid to revive the ailing technology giant. In returning as CEO, Tan is set to take over the American icon after a decade of bad decisions by three CEOs in which it failed to build chips for smartphones and missed surging demand for AI processors, allowing competitors Arm Holdings and Nvidia, opens new tab to dominate those markets. In the near term, Tan aims to improve performance at its manufacturing arm, Intel Foundry, which makes chips for other design companies such as Microsoft, opens new tab and Amazon, opens new tab, by aggressively wooing new customers, according to the people. The centerpiece of Gelsinger's turnaround plan was to transform Intel into a contract chip manufacturer that would compete with Taiwan Semiconductor Manufacturing Co, opens new tab, or TSMC, which counts Apple, opens new tab, Nvidia and Qualcomm, opens new tab as customers.