Intel CEO Lip-Bu Tan has a new policy in the company: Every major chip design needs to be…

Intel CEO Lip-Bu Tan

has instituted a new hands-on leadership policy requiring his personal review and approval of every major chip design before tape-out, marking a significant shift toward centralized oversight in the company's product development process. The policy aims to improve execution and reduce development costs as the struggling chipmaker works to regain its competitive edge.The new discipline is part of Tan's broader strategy to strengthen Intel's product roadmap and improve financial performance, following the company's first unprofitable year since 1986. Intel posted a net loss of $18.8 billion for 2024 and has been working to streamline operations under Tan's leadership since he took over as CEO in March 2025.

CEO implements direct oversight to streamline chip development and cut costs

Tan has directed engineering teams to define next-generation product families with "clean and simple architectures, better cost structures and simplified SKU stacks," according to a company message sent to employees in July. The CEO's hands-on approach represents a departure from traditional semiconductor industry practices, where design decisions typically flow through multiple management layers.

The policy comes as Intel faces mounting pressure from competitors, particularly Taiwan Semiconductor Manufacturing Company (TSMC), in both manufacturing capabilities and customer relationships. Tan has also been working to reduce Intel's workforce by approximately 15%, cutting management layers by about 50% in the second quarter of 2025.Intel's foundry business has struggled to attract major external customers like Apple and Nvidia, who continue to rely on TSMC for chip manufacturing. The company is now focusing resources on its 14A manufacturing process while reconsidering its approach to the 18A process that consumed billions in development costs.The new review policy is part of Intel's broader transformation efforts, which include consolidating operations, slowing construction projects, and refining the company's artificial intelligence strategy to focus on inference and agentic AI applications.