According to an internal memorandum obtained by Zhitongcaijing APP, $Intel (INTC.US)$ The new CEO, Lip-Bu Tan, is streamlining the leadership team of this semiconductor giant, with the core chip division now reporting directly to him.

The memorandum states that the company has also promoted Sachin Katti, the head of the network chip division, to Chief Technology Officer and AI Director.

This is the first major move since Lip-Bu Tan took over last month, aimed at turning around the fortunes of this long-established Silicon Valley chip manufacturer that has faced difficulties for years. The Intel Datacenter and AI Chip divisions and the Personal Computer Chip division will now report directly to Lip-Bu Tan, these divisions were previously managed by Intel Product Business CEO Michelle Johnston Holthaus.

"I hope to work closely with the engineering and product teams to understand the conditions required for strengthening solutions," Lip-Bu Tan wrote in the memorandum, "As Michelle and I work together on this, we plan to gradually expand her responsibilities, with specific details to be announced in the future."

Lip-Bu Tan has committed to making this legendary American chip company more streamlined, and this reorganization comes as Intel is experiencing a long period of turmoil. The former CEO left last year due to disagreements with the Board of Directors over the company's transformation strategy, while Intel was struggling with the consequences of long-term manufacturing process mistakes and product strategy deviations. Its biggest challenge now is competing with NVIDIA, which has become the dominant supplier in the AI chip field.

Under the leadership of Chen Liwu, Intel is increasingly focusing on its 'engineering gene'.

Despite acquiring multiple AI Chip startups, Intel has consistently failed to establish a coherent strategy to challenge. $NVIDIA (NVDA.US)$ Its latest attempt, the 'Falcon Shores' chip project, has been shelved this January. The task of developing a new AI strategy now falls to Kati.

Chen Liwu stated in an email that Kati 'will expand his responsibilities and also serve as the company's Chief Technology and AI Officer. In this position, he will lead our overall AI strategy and AI product roadmap, while also overseeing Intel Labs and the company's relationships with startups and the developer ecosystem.' The memorandum noted that Kati, who is also a professor at Stanford University, will replace the retiring Greg Lavender.

In recent years, Intel's executive team has been largely composed of business unit heads, while technical leaders are typically under the multiple layers of management of the CEO. Chen Liwu announced in the memorandum that three senior technology executives—Rob Bruker, Mike Hurley, and Lisa Pearce—will report directly to him moving forward.

'This reflects our emphasis on transforming into an engineering-driven company, and will allow me to have a clearer grasp of the elements needed for market competition,' Chen Liwu emphasized in the memorandum. He had previously stated plans to reduce the company's management levels to encourage tighter collaboration between the executive team and engineers.

'I am keenly aware that organizational complexity and bureaucratic processes are gradually stifling the innovative culture needed for us to win,' Chen Liwu pointed out in the memorandum, 'decision-making takes too long, new ideas lack the space and resources to be nurtured, and unnecessary departmental barriers lead to inefficient execution.'

Editor/rice