Intel Corp.'s incoming CEO, Lip-Bu Tan, is set to implement significant changes to the company's chip manufacturing methods and artificial intelligence strategies upon his return on March 18, according to sources familiar with his plans. Tan aims to overhaul Intel's approach to AI and address inefficiencies within the company's management structure, with plans to make 'tough decisions' to streamline operations. One of Tan's core priorities is to revamp Intel Foundry, the company's manufacturing arm, which produces chips for clients such as Microsoft and Amazon. He plans to aggressively pursue new customers to boost performance and efficiency at Intel Foundry, and move to an annual chip production cycle. In addition to manufacturing, Tan is considering broadening Intel's AI business, with plans to restart production of chips for AI servers and explore new areas such as software, robotics, and AI foundation models. This strategic shift is part of a broader effort to revive the technology giant, which reported an annual loss of $19 billion in 2024. Intel's stock has risen 18.8% recently and was up 1.1% in premarket trading following the announcement of Tan's plans, indicating market confidence in the proposed changes and further cost cuts.