Intel has introduced a new policy mandating that all new projects must achieve at least a 50% gross margin to proceed, a move CEO Lip-Bu Tan describes as essential for regaining profitability, given the company’s recent low margins of 31.67%. Tan is focused on improving gross margins, potentially by reevaluating unprofitable partnerships, while also striving to reestablish Intel as an engineering-centric company through recruiting and retaining top talent. However, balancing innovative product development with stringent margin requirements may create internal challenges within the company.
