Intel's effort to rebuild its business under CEO Lip-Bu Tan has received fresh attention as demand for central processing units (CPUs) increases alongside the rapid expansion of artificial intelligence applications.
The renewed focus emerged during Computex 2026 in Taipei, one of the semiconductor industry's most closely watched events. The conference took place against a backdrop of growing geopolitical tensions around Taiwan, the center of the global advanced chip supply chain, where Chinese military activity near the island continued during the event, according to Reuters.
Tan, who became Intel's chief executive in March 2025, inherited a company that had lost market share in several key segments while rivals such as Nvidia and AMD strengthened their positions. Intel also faced mounting challenges in contract chip manufacturing, where Taiwan Semiconductor Manufacturing Co. (TSMC) dominates production of the world's most advanced semiconductors.
Speaking at Computex, Tan emphasized Intel's engineering-focused culture and efforts to streamline operations. CNN noted that he told attendees that engineering now reports directly to him as part of a broader restructuring effort aimed at improving execution and simplifying decision-making.
The company's traditional strength remains CPUs, the processors that serve as the primary computing engine in personal computers and servers. While graphics processing units (GPUs) have become synonymous with training large AI models, CPUs are increasingly important for inference workloads, where trained models generate responses and perform tasks in real-world applications.
That shift has drawn renewed industry attention. Nvidia CEO Jensen Huang said during a Taipei presentation that "the CPU is now the conductor, and the GPU is the orchestra," highlighting the growing role processors play in AI infrastructure.
Tan told reporters on the sidelines of Computex that demand for CPUs has accelerated, saying corporate customers had contacted Intel seeking additional supply. The comments came as AI developers increasingly deploy agent-based systems and enterprise AI tools that rely heavily on inference computing.
The restructuring effort has been extensive since Tan's arrival. Intel has reduced its workforce, divested non-core assets and paused planned factory expansions in Germany and Poland. The company has also recruited executives from outside organizations and reorganized leadership structures to reduce layers of management.
Alongside internal changes, Intel has received support from Washington. In August 2025, the U.S. government announced an $8.9 billion investment in Intel in exchange for roughly a 10% ownership stake, part of a broader effort to strengthen domestic semiconductor manufacturing capacity and reduce reliance on overseas production, according to Reuters.
The investment underscored the strategic importance of semiconductors amid ongoing competition between the United States and China over advanced technology and supply chains. It also reflected concerns about concentration of chip manufacturing in Taiwan, where TSMC remains a critical supplier for companies including Apple, Nvidia and Intel.
Intel has also sought new partnerships as part of its broader turnaround strategy. Earlier this month, the company announced an AI infrastructure collaboration with Foxconn aimed at expanding deployment of AI platforms globally, according to Barron's.
