Intel's incoming CEO Lip-Bu Tan has considered significant changes to its chip manufacturing methods and artificial intelligence strategies ahead of his return to the company on Tuesday, two people familiar with Tan's thinking told Reuters,

At a town hall meeting following his appointment as CEO last week, he told employees that the company will need to make "tough decisions," according to two other people briefed on the meeting.

Lip-Bu Tan, who takes over as Intel CEO on Tuesday, is planning to overhaul the struggling chipmaker’s manufacturing business, while also adjusting its “approach to AI and staff cuts,” according to a report from Reuters.

The chip company's shares were gaining early Monday as more details emerge about new Chief Executive Lip-Bu Tan's plans.

Intel's new CEO Lip-Bu Tan, reportedly, is thinking of a revamp of the company's AI strategy and manufacturing operations, as well as potential job cuts.