Intel’s newly appointed CEO, Lip-Bu Tan, is initiating a significant restructuring of the semiconductor company’s leadership by streamlining its management team. A memo from Tan, which was reviewed by Reuters, reveals that key chip divisions will now report directly to him.
Additionally, networking chip head Sachin Katti has been elevated to the position of chief technology officer as well as chief of artificial intelligence, according to the memo.
This leadership realignment marks Tan’s first substantial action since assuming the role last month. His objective is to revitalize the storied Silicon Valley chipmaker, which has faced numerous challenges over recent years. Under the new structure, Intel’s data center and AI chip group, alongside its personal-computer chip division, will report directly to Tan, which previously fell under the oversight of Michelle Johnston Holthaus. Holthaus retains her position as CEO of Intel products, with an expanded focus on new areas.
In his memo, Tan expressed a desire to engage directly with engineering and product teams to better understand the needs for enhancing Intel’s solutions. He mentioned, “As Michelle and I drive this work, we plan to evolve and expand her role, with more details to come in the future.”
This organizational change comes on the heels of a tumultuous period for Intel, based in Santa Clara, California. The previous CEO departed last year following disagreements with the board regarding strategies for recovery after numerous manufacturing and product miscalculations. A significant challenge facing Intel is the emergence of Nvidia, which has established itself as the leading provider of AI chips.
‘Slowly Suffocating’ Innovation
Despite Intel’s acquisition of several AI chip startups, the company has struggled to formulate a clear strategy to compete against Nvidia. In January, Intel discontinued its latest initiative, the Falcon Shores chip. Developing a new AI strategy will now fall under Katti’s responsibilities.
According to Tan’s memo, Katti “is expanding his responsibilities to include the role of chief technology and AI officer for the company. He will lead our overall AI strategy and AI product roadmap, as well as oversee Intel Labs and maintain our relationships with the startup and developer ecosystems.”
Katti, who also holds a professorship at Stanford University, will replace Greg Lavender, who is retiring from Intel.
Intel is also in search of a new leader for government affairs, who will report to Tan due to the increasing significance of this role in the current global context. The former head, Bruce Andrews, who previously held a position in the Commerce Department under President Barack Obama, departed Intel following the U.S. elections last November.
The new appointee will be tasked with managing Intel’s governmental relationships both domestically and internationally, particularly in light of the steep tariffs imposed on China by President Donald Trump. Tan’s venture capital fund has significant investments in China.
In recent years, Intel’s executive lineup was characterized by numerous business unit leaders, with technical leaders often positioned several layers beneath the CEO. The memo noted that three veteran technical executives—Rob Bruckner, Mike Hurley, and Lisa Pearce—will now report directly to Tan.
Tan emphasized that these changes support an emphasis on engineering within the company and are designed to provide him with insight into what is necessary for competitive success. He stated, “It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win. It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution.”
© Thomson Reuters 2025
