After Chen Liwu took over Intel, the management level was cut and the stock price rose by almost 500%.

IT House News, 4 June, 3rd local time, wrote in Fortune magazine that Intel had been one of the most representative brands of Silicon Valley and had been admired by the innovation of making chips, and hardware manufacturers had at one point competed for the label “Intel Inside” on the equipment. But for the next 20 years, the market share of Intel continued to be eroded, after having missed the wave of mobile Internet and lagged behind its competitors in the AI era. By the beginning of last year, the outside world had even begun to question whether Intel would be able to continue its operations.

Then Intel arrived. After Chen Liwu took office as CEO, Intel became one of the most interesting stocks on the market in only about a year, rising by nearly 500 per cent.

The semiconductor industry will take over in Intel in March 2025, becoming the third CEO of Intel in six years, and the sixth CEO of Andy Grove, the legendary co-founder in 1998. At the time of Chen's appointment, the label on Intel was no longer primarily a chip innovation, but a debt of as much as $50 billion (IT House Note: The current exchange rate is approximately RMB 3394.14 billion). CFO David Zinsner said, "We all know that we have to fix the balance sheets, but we didn't know exactly what to do."

Chen Liwu then promoted the sale of non-core operations in Intel and the use of what Zinsner called the “Amazing Human Network” for fund-raising. Soon, Inverda and soft silver invested billions of dollars in Intel. At the same time, Chen has agreed to allow the United States government to convert the $8.9 billion (current exchange rate of approximately $60,416 million) grant to the federal government’s shareholding, and to let Intel again become the focus of public opinion.

According to Zinsner, “Soft and silver endorsements are good, and United States government endorsements are very good.” In his view, the stations of Inverda, Soft Silver and the United States Government had increased the confidence of creditors and investors in Intel and stabilized the capital structure of Intel.

However, funding does not solve the deeper problem in Intel: long-term complacency within the enterprise. Chen Zhiwo tried to change that culture. He constricted the Intel management hierarchy from 12 to 6 levels, and heard directly from employees at all levels about company performance, breaking the past management practice of “good news and no concern”.

Zinsner recalled that Chen Li Wu had just arrived in Intel and said, “If you have a problem, that's our problem. Tell me sooner, we have to deal with it. If you have a problem and don't tell me, it's your problem."

According to the article, the Intel reform has progressed very quickly after Chen Li Wu took office, but the real test remains product competitiveness. Bernstein's analyst Stacy Rasgon said, "Intel became swollen, dull and lazy, and was taught a hard lesson by the competition." In the AI era, the Inverda and the station were in the middle of the stage, and Intel had to watch more often.

However, Intel is re-dipping a glass from the Ai boom. According to Lasgon, there's also a lot of luck in it: the memory needs of AI are so great that business is beginning to become an Intel tradition. CPU Find more uses. As a result, Intel sold large quantities of existing stocks, and the stock price increased significantly.

The greater challenge is that Intel has to prove that it still has the capacity to make the most advanced chips. Positive signals have emerged: the 14A process of Intel's next generation is well under way, and the outside world has been following it very closely, as this technological transformation could help Intel to get more high-level clients. Another core business in Intel is the design of chips for other companies. There have been recent reports that apples may once again choose Intel as a supplier, also providing new imagination for Intel.

According to Zinsner, Chen's CEO did not basically continue the habits of previous CEOs, often citing Andy Grove, but repeatedly referred to the latter's most famous sentence: “Only paranoia can survive.”

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