Lip-Bu Tan quit Intel board after ‘differences’ with CEO, says Reuters

News | August 28, 2024

By Peter Clarke

Intel Corporation

Respected semiconductor executive and investor Lip-Bu Tan has resigned from the board of struggling chip company Intel after differences with CEO Pat Gelsinger over the company’s revival plan, according to Reuters.

Intel posted a Securities and Exchange Commission filing on August 22 saying that Tan had informed the company on August 19 that he had resigned from the board effective immediately. In the filing Intel quoted Tan saying: “This is a personal decision based on a need to reprioritize various commitments and I remain supportive of the company and its important work.”

Intel slashes jobs, capex as results disappoint

However, Reuters has reported that Tan resigned after differences with CEO Gelsinger and other directors over management of the company. Reuters referenced three unnamed sources saying that Tan considered the US company to have bloated workforce, a risk-averse culture and a strategy on artificial intelligence that was lagging the competition.

The board asked Tan to oversee the company’s manufacturing operations in October 2023 but reportedly Tan grew increasingly frustrated with the bureaucratic culture, large workforce and approach to contract manufacturing. The creation of Intel Foundry based on internally-developed leading-edge semiconductor manufacturing technology is an essential part of Gelsinger’s revival plan for Intel.

Tan’s resignation came shortly after announced plans to cut 15,000 jobs or 15 percent of the workforce and slash capital expenditure after poor financial results in 2Q24.

Tan was previously a successful CEO of EDA company Cadence Design Systems Inc. and has been a significant investor across the breadth of the semiconductor industry through the venture capital company Walden International which he founded and chairs.