June 7, 2025 – During the Bank of America Global Technology Conference, Michelle Johnston Holthaus, the product chief executive at Intel, revealed that the company’s newly appointed CEO, Lip-Bu Tan, is advocating for a mid-term goal of restoring the company’s gross margin to 50%. According to Johnston Holthaus, any new projects that fail to meet this threshold will not receive the green light.
Johnston Holthaus emphasized that the 50% gross margin target is not only in line with shareholders’ expectations but also achievable by competitors, leaving Intel with no valid excuse not to pursue it. She pointed out that the key to achieving this goal lies in implementing a highly disciplined approach to product lifecycle planning, which should be integrated into the development process from the very beginning.
Looking ahead, Johnston Holthaus expressed confidence that Intel’s upcoming product lineup demonstrates the company’s capability to achieve a 50% gross margin across its entire product range. In line with Tan’s vision, Intel is planning to conduct more pre-silicon validation work before the chip tape-in phase. This proactive measure aims to eliminate unnecessary iterations and reduce the costs associated with repeated tape-outs. Additionally, Intel is adopting a more prudent and realistic approach when it comes to incentive payments to PC OEMs.
