ntel has been shaken up by the sudden quit of a high-profile Intel board member. This happened due to differences between CEO Pat Gelsinger and other
directors over his ideas about the U.S. company’s bloated workforce, the risk-averse culture, and the slowed AI strategy.
The semiconductor industry veteran, Lip-Bu Tan, stated that he is leaving the Intel board due to some personal decisions to “reprioritize various commitments”. He also said this Tuesday that he is “supportive of the company and its important work,”.
He worked before as the CEO of chip software company Cadence Design and joined the Intel board from Intel about two years ago with a plan to reinstate the company as the leading global chip maker. After one year, Intel and the board increased his work and gave him more responsibilities in October 2023, to supervise the manufacturing activities.
As time has passed, Lip-Bu Tan has become more upset about the large workforce, their approach to contract manufacturing, and the chipmaker's bureaucratic culture.
The situation about Tan's quitting had not been reported before and his leaving from the chip maker industry shows the incertitude in their strategy to turnaround in the industry.
He is quitting during a back period for Intel in their five-decade history, and they are now exposed and vulnerable to a possible activist shareholder attraction according to other former executives. To be prepared for every case, the company has gathered the Intel board meeting and decided to hire the Morgan Stanley investment bank.
According to investors and semiconductor industry insiders, Tan's exit leaves a void in the chip industry populated by leaders from academia and finance, and former senior executives from the medical, tech, or aerospace industries.
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Other previous Intel executives stated for Reuters that the chip maker company began months ago to prepare for some potential activist threat. But it can’t be confirmed yet if any shareholder is preparing itself for an approach.
We can say that his resignation was an unexpected event for the Intel board members and as a consequence, they are preparing for any event and problem that may arise after his quitting.
Stay tuned for any updates about Intel's situation!
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