Former Intel board member quits over concerns about chipmaker’s revival plans

Intel board of directors’ member Lip-Bu Tan reportedly left the company earlier this month over concerns about the company’s turnaround plans.

According to a report by Reuters, Tan, who was previously chief executive of Cadence Design Systems and joined Intel’s board two years ago, quit the company because of differences with chief executive Pat Gelsinger and other directors over the size of the company’s workforce; its risk-adverse strategy; and a lagging artificial intelligence action plan.

People familiar with the matter told the news agency that he also expressed concerns about Intel being led by middle managers that have hindered the company’s progress, which he said had impacted the evolution of its server and desktop chip arms.

“I am grateful for the opportunity to serve on the Intel board of directors,” Tan said in a recent company filing. “This is a personal decision based on a need to reprioritise various commitments, and I remain supportive of the company and its important work.”

Earlier this month, Intel shares plummeted10.5 per cent, with the chipmaker announcing it would let go 15 per cent of its 110,000 workforce as it looks to streamline its operations and “meaningfully cut spending and headcount.”

“Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity,” chief financial officer David Zinsner reported in the firm’s financial results for the second quarter of 2024.

“By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet.”