SAN FRANCISCO: In a decisive move to enhance operational efficiency and innovation, Intel's newly appointed CEO, Lip-Bu Tan, is restructuring the semiconductor giant's leadership framework. According to an internal memo obtained by Reuters, Tan is implementing significant changes that will see critical chip divisions reporting directly to him.

As part of this reorganization, Tan has also elevated Sachin Katti, the head of networking chips, to the role of Chief Technology Officer and Chief of Artificial Intelligence. This decision signals a clear intent to prioritize technology advancement as a cornerstone of the companys future direction.

This leadership overhaul marks Tan's first substantial initiative since stepping into the CEO position last month, succeeding Pat Gelsinger. Under the new structure, Intels data center and AI chip divisions, along with its personal computer chip segment, will now report directly to Tan, shifting away from oversight by Michelle Johnston Holthaus, the former executive in charge of Intel products.

In his memo, Tan expressed his hands-on approach, stating, I want to roll up my sleeves with the engineering and product teams so I can learn whats needed to strengthen our solutions. He emphasized the importance of collaboration with engineering teams to foster meaningful advances in product development. Tan also indicated plans to work closely with Holthaus, suggesting that her role may evolve with specific details to be announced in the near future.

Sachin Katti, who balances his role at Intel with a professorship at Stanford University, is stepping into this new position following the retirement of Greg Lavender, a significant figure in Intels leadership. This transition highlights Intel's strategy of integrating academic perspective into its technological development, potentially driving more innovative solutions.

The restructuring aligns with Tan's publicly stated goals to reduce layers of management within the company. He is keenly aware of the potential pitfalls of organizational complexity and bureaucracy, which he believes have hindered Intel's capacity for innovation. In his memo, Tan remarked, Its clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win. He pointed out that delays in decision-making, lack of support for new ideas, and the existence of unnecessary silos have contributed to inefficient execution, all issues he intends to address.

As the semiconductor industry continues to evolve rapidly, Tan's leadership changes at Intel reflect a broader trend towards agility and innovation in tech companies. Enthusiasts and industry experts alike will be watching closely to see how these changes impact Intel's trajectory in the fiercely competitive market.