Intel's CEO, Lip-Bu Tan, has caused concern among investors by focusing more on cost-cutting than regaining the company's technological lead. He announced cancellations of certain factory projects and criticized previous investments as excessive. Although Tan provided a positive outlook for third-quarter sales, he failed to convincingly outline how Intel would enhance its competitiveness. The company plans to tentatively advance production technology only if customer commitments are assured. Following these announcements, shares dropped approximately 5.5% in premarket trading while revenues remained steady but profits fell short of expectations.
Intel's CEO Lip-Bu Tan expressed concerns about excessive spending, prompting a shift in priorities toward cost-cutting. He canceled factory projects and questioned previous investments made under his predecessor.
Tan signaled cautious progress on transitioning to advanced production techniques like 14A, indicating that expansion would depend on customer commitment. This uncertainty led to investor concerns about Intel's competitive edge.
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