Intel CEO Lip-Bu Tan has acknowledged that the company lost its data center leadership under former CEO Patrick Gelsinger. Tan said, "We used to have leadership in data center, and over the years we lost it." He is now restructuring the engineering organization to report directly to him and has brought back former employees.
Tan restructures engineering to report directly to him.
Intel's server market share fell to 72% in the third quarter of 2025, down from 91% in the first quarter of 2019. Tan described the previous structure as having "too many silos, too many people reporting." He is focusing on engineering, redesign, and simplifying products to deliver what he called "real killer products."
On the manufacturing side, Tan reported that Intel's 18A chip yield is improving at 7-8% per month. He said, "the best practice is to see 7% or 8% yield improvement per month, and now I'm seeing it."
Intel's market cap stands at $563 billion compared to AMD's $689 billion, but Intel shares have risen 182% year-to-date. The company is working to regain competitiveness in the data center CPU market under Tan's new strategy.
Intel has not confirmed a timeline for regaining data center leadership. The information comes from an interview with CNBC's Jim Cramer.
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