Tan hinted at his plans to boost the struggling chipmaker’s prospects by fostering a return to the office mandate and focusing on core engineering work, Reuters cites from an investor meeting.

The chipmaker plans to reduce operational expenses to $17 billion in 2025 and $16 billion in 2026 while cutting its 2025 capital expenditure target from $20 billion to $18 billion.

Also Read: Taiwan Semiconductor To Begin Production Of Advanced 1.4nm Chips In 2028

Reuters cited CFO David Zinsner during the investor meeting as saying tariff concerns prompted customers to hoard Intel chips, boosting sales in the first quarter. However, the company, unable to determine the tariff concerns induced surplus, expects the second quarter to suffer.

Zinsner said the very fluid trade policies in the U.S. and beyond and regulatory risks have increased the chance of an economic slowdown with the probability of a recession growing.

China imports $10 billion worth of chips from the U.S. annually. About $8 billion of these are central processing units (CPUs) assembled by Intel in the U.S., Reuters cited Bernstein analysts.

Intel fired its chief Pat Gelsinger in 2024 after his turnaround plan to take on Taiwan Semiconductor failed to impress the board.

Intel struggled as rivals Advanced Micro Devices, Inc (NASDAQ:AMD) and Nvidia captured market share in data centers, AI, and GPUs, impacting profitability.

Intel reportedly tapped Taiwan Semiconductor for a 2nm process to manufacture Nova Lake PC chips, which are expected to be available in 2026.

Recently, Taiwan Semiconductor told Bloomberg that it had not discussed forming a venture or sharing its technology with any company, dismissing speculation of a possible collaboration with Intel.

Price Actions: At the last check Friday, INTC stock was down 8.05% to $19.77 premarket.

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