In a bold movement with the objective of transforming backstage of the semiconductor industry, Intel announced a new internal guideline: No product will be developed if it does not present, from the beginning, a clear perspective of at least 50% of gross margin.
The rule was revealed by Michelle Johnston HolthausCEO of the company’s product division during a Bank of America conference.
The measure is part of a broader restructuring, headed by Intel’s new global CEO, Lip-This Tanwith direct focus on margin recovery, cost cutting and prioritizing projects with robust financial return.
It is a strategic repositioning with immediate reflexes in the company’s innovation culture.
Decision directly affects future chips roadmap
According to Holthaus, the policy is already in force and No engineering team will be allocated to projects that do not reach the new goal of profitability.
Among the affected products are lines like Panther Lake e Nova Lakewhich now only go on with the proven economic viability.
The product does not advance if there is no gross margin of at least 50%. Engineers are not even designated to the project in this case
Michelle Johnston Holthaus, CEO of the Intel Product Division
She also stressed that the margin goal does not apply to all the company’s operations, but became a non -negotiable filter for new initiatives.
We need to create products that fit the competitive scenario and meet customer needs, but also with the right cost structure. We have to balance both sides
Profit pressure exposes internal tensions
The minimum profitability requirement raises concerns within Intel itself. Holthaus predicts a “Cable of War” between technical innovation and economic viabilityas many disruptive projects require years of development before they become profitable.
CEO imposes cuts and promises to rebuild engineering culture
Since taking office, Lip-bi tan has been relentless In review of agreements, cuts of intermediate leaders and reevaluation of investments considered unprofitable. A new wave of layoffs, which can reach up to 20% of remaining employees, is scheduled for the second quarter.
Tan, however, maintains that the high profit goal is not incompatible with innovation. According to him, the Intel needs to recover his cutting -edge engineering culturesomething that, according to your words, has been lost over time.
I want to rebuild a culture of empowerment and innovation. Intel has lost important talents over the years, and we need to attract the best again
Lip-this tan, Intel CEO, during a meeting with investors
Despite the optimistic tone, the challenge of maintaining the morale of the teams while cutting costs and bares risk projects is evident.
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Historical fall on the margins presses changes
This Intel decision didn’t come out of nowhere. The company’s gross margin has dropped dramatically in recent years, leaving 60% – where it remained for a decade – to Only 31.67% in the first quarter of 2025according to data from Macrotrends.
The collapse on the margins began in 2022, during the deepest effects of the pandemic, and since then The recovery has been slow and uncertain. With this, the goal of 50% represents both a brake and a lighthouse: a hard filter for projects, but also a symbol of the ambition to return to the industry elite.
Source: Investing.com
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Source: https://www.adrenaline.com.br/intel/nova-regra-intel-produtos-novos-lucro-minimo-50/
