Intel's New CEO Plots Turnaround; 'We Need to Improve'

By Connor Hart

Intel has a lot of hard work ahead, Chief Executive Officer Lip-Bu Tan said.

Tan, who was named as the beleaguered semiconductor company's new CEO earlier this month, said early conversations with customers have taught him that Intel strayed too far from the industry's needs and fell behind its competitors when it came to innovation.

"We need to improve," he said Monday during his keynote address at the Intel Vision conference in Las Vegas. "And we will."

Moving forward, the Santa Clara, Calif., chip maker plans to double down on innovation, focusing primarily on its core businesses, which Tan said can be improved through the use of artificial intelligence and new softwares.

"We will redefine some of our strategy and free up the bandwidth," he said. "Some of our non-core business--we will spin it off."

Intel's lean into AI will also include humanoid robotics, which Tan said has the ability to redefine manufacturing in the future. The company additionally needs to regroup its existing pool of workers, while attracting new talent with a clear vision for the future.

Intel, which used to be one of Silicon Valley's biggest innovators, has lost market share and struggled to execute a strategy to keep up with other chip makers. Its stock has lost nearly half its value over the past year, underperforming both the market and its competitors, though deal speculation has helped push shares up so far this year.

Write to Connor Hart at connor.hart@wsj.com