Intel CEO Says Restructuring Is 80% Complete as U.S. Stake Stays Passive

Intel CEO Lip-Bu Tan said the company has completed about 80% of its restructuring as it works to rebuild its chipmaking business with federal support and a passive U.S. government shareholder.

The federal government invested $8.9 billion in Intel in 2025 by converting funds previously allocated to the company into an equity stake. Its initial 9.9% holding fell to about 8.2% after Intel issued additional shares in August.

The government has no seat on Intel's board. Tan said it did not intend to use its stake to intervene in the company's business strategy. He also said federal support remains important to the long-term investment required to build a competitive chip foundry business.

A foundry manufactures chips designed by other companies. Tan pointed to Taiwan Semiconductor Manufacturing Co. (TSMC), saying it took 10 to 20 years to become the world's largest foundry. He said Intel's effort would also require time and sustained government support.

Intel is trying to regain ground in advanced semiconductor manufacturing, where it trails TSMC, and in artificial intelligence chips, where Nvidia and other U.S. competitors have pulled ahead. Intel has also received about $7 billion in combined equity investment from SoftBank Group and Nvidia.

The restructuring follows a costly expansion of Intel's foundry capacity under former CEO Pat Gelsinger. Intel recorded a $16.6 billion net loss in the third quarter of 2024, and Gelsinger stepped down that December.

Tan became CEO in March 2025 and has since replaced most of Intel's senior executives. He identified advanced packaging for AI chips and application-specific integrated circuits, which are chips designed for particular uses, as possible areas of growth.