Intel chief: 'In the past, we made a lot of mistakes... from day one I came on board as CEO, I have all the engineering report to me'
Intel CEO Lip-Bu Tan sat down with Mad Money host Jim Cramer for a chat about the company's recent success, and the turnaround it's experienced during his tenure. In a wide-ranging discussion, the Intel head honcho credited many reasons for Intel's recovery from its previously shaky spot, including a change in management style.
"In the past, we made a lot of mistakes, and now we correct that mistake, and we simplify the roadmap. From day one I came on board as a CEO, I have all the engineering report to me," said Tan.
"They didn't report to the previous CEO?" asked Cramer. "No," Tan replied. "And so, in a way, they [had] too many silos, too many people needed reporting. And even though they come to the CEO, they are not paying attention to it."
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"So I decided the best thing is to really understand where the problem is," Tan continued, "so that I can focus on the engineering, how to redesign, [how to] simplify the products, and then get the real killer product out."
And by the sounds of it (and the look of Intel's most recent financials), Tan's hands-on management style appears to have worked. Addressing Intel Foundry, Tan said: "When I took over, the 18A yield [was] not good. And I had to ask some of the ecosystem partners to help me look at the data, how to improve the industry standard."
(Image credit: Intel)
"The best practice is to see seven or eight percent yield improvement per month, and now I'm seeing it."
Still, despite Tan's assertion that a change of reporting at the top has made a major difference to Intel's business, he was also quick to credit the teams underneath him—along with Intel's relationship with its customers.
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"It's a lot of hard work, it's a lot of teamwork, a lot of talent I brought on board to help," said Tan. "It's a service business. You need to build the trust with the customer."
On the topic of Intel's customers, Tan also said the company would have risk production of its upcoming 14A process underway in 2028, and volume production in 2029. "It will be the same time as TSMC," said Tan. "So that is a major, major breakthrough."
It certainly seems so. Tan's hands-on approach looks to have brought the company success that seemed a million miles away from reality in previous years, and with Elon Musk's Terafab project lining up for its 14A tech, it's looking like a bright future for Intel if it can keep bringing in the wins. Not to mention its partnership with Nvidia. I still can't quite get my head around that, can you?
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