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After Lip-Bu Tan became chief executive officer of Intel Corp. in March of last year, the struggling company’s shares went nowhere for seven months while the chipmaker was getting trounced in the market for artificial intelligence.

But after forging ties to the world’s biggest tech titans — and winning over US President Donald Trump — Tan is kicking off year two on a decidedly higher note. Apple Inc. and Tesla Inc. are showing interest in the company’s manufacturing. The processors it makes are back in demand, and budding optimism that Intel will finally start to benefit from the AI boom has sent its stock to a record.

Before Tan can deliver on shareholders’ rising expectations, he has to make changes within the 57-year-old company that was formerly a leader in semiconductor manufacturing. Since becoming CEO, Tan has spent far more time outside the company than inside, and has not widely explained his specific plan to fix products and manufacturing to employees, according to more than a dozen current and former staff, who were not authorized to speak publicly. We get more from Sarah Frier, Bloomberg News Managing Editor for Big Tech.
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Apple has held exploratory discussions about using Intel and Samsung to produce the main processors for its devices in the US. According to people familiar with the deliberations, Apple had early-stage talks with Intel about enlisting the company’s chipmaking services. Apple executives also made visits to a Samsung plant under development in Texas. The move would offer a secondary option beyond longtime partner TSMC. Bloomberg’s Neil Campling explains.
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