Syed Imran Haider 
A high-profile member of Intel’s board resigned suddenly over differences with the CEO Pat Gelsinger, along with other directors.
The director had disagreements over the US firm’s risk-averse culture, bloated workforce as well as its lagging strategy related to artificial intelligence (AI).
The Resignation
A veteran of the semiconductor industry, Lip-Bu-Tan announced that it was a personal decision to leave the board.
He added that he was ‘reprioritizing’ different commitments and that he was still supportive of the company’s work.
Before joining Intel’s board two years earlier, he had served as the former CEO of Cadence Design, a chip-software firm.
He had become a part of Intel to help restore it as the leading global chipmaker. In October last year, his responsibilities had been expanded.
The director had been given the authority to oversee manufacturing operations. However, the large workforce of Intel caused Tan to become frustrated with the company.
Sources familiar with the matter revealed that the bureaucratic and risk-averse culture of the company, along with its contract manufacturing approach, were also a source of frustration for Tan.
The circumstances of Tan’s resignation had not been disclosed previously. The industry veteran is well-regarded by investors.
His departure over the strategy of Intel shows the uncertainty the company is facing in its turnaround efforts.
The Company’s Situation
Tan’s departure comes at a very bleak period for the company in its five-decade history. Intel is currently susceptible to a potential activist shareholder attack.
Sources that are familiar with the matter revealed that Intel has sought the services of investment bank Morgan Stanley for preparing its defense.
Headquartered in California, Intel did not issue any statement about Tan’s departure. His exit means that the board is now lacking in terms of chip-industry business and technical acumen.
Leaders in finance and academia are members of the board. Likewise, there are also former executives from the tech, medical and aerospace industries.
According to former Intel executives, the company had begun making preparations for a potential activist threats months earlier.
The Struggles
Earlier this month, Intel reported its results and announced a pause in the dividend that it has been paying for decades.
It also revealed that it would cut back on its capital spending on factory construction. This saw its market value plummet by a whopping $30 million.
The company is struggling at a time when its rivals have been aggressively investing in artificial intelligence (AI) amidst rising interest.
Graphics chipmaker Nvidia capitalized on the AI boom to reach a market cap of $3 trillion. It had been reported that Intel had the opportunity to buy a 30% stake in OpenAI back in 2018.
The company is the mastermind behind ChatGPT. Since 2010, Intel has acquired at least two AI startups for developing an AI chip.
While the AI chips from its Habana acquisition were quite promising, its senior leaders departed to form their own company in Israel. This ended up hurting Intel’s efforts.
In August, Intel had announced layoffs of more than 15% of its staff to reduce costs.
