Intel CEO Lip-Bu Tan steps down from Aling Chipmaker’s board

(Bloomberg) — Intel Corp. Chief Executive Lip-Bu Tan, a semiconductor industry veteran brought in two years ago to help the chipmaker’s turnaround effort, has resigned from the board.

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Tan informed the board on Aug. 19 that he would be leaving, effective immediately, Intel said in a filing on Thursday, confirming an earlier report by Bloomberg News. The director, a former chief executive of Cadence Design Systems Inc. who also runs an investment firm, cited “time demands” to drive the move.

“This is a personal decision based on the need to rearrange various commitments and I remain supportive of the company and its important work,” he said in the filing.

The move comes after a disastrous quarterly report earlier this month that sent Intel shares to their worst loss in decades. The once-dominant chipmaker gave a tough forecast, suspended its long-overdue dividend and announced plans to cut more than 15 percent of its workforce.

CEO Pat Gelsinger has tried to restore Intel’s position in the chip industry by pouring money into new factories and technologies, but rivals such as Nvidia Corp. and Advanced Micro Devices Inc. they only made additional gains.

Tan was elected to the board in September 2022 and appointed to Intel’s mergers and acquisitions committee.

When Tan joined the board, he praised Gelsinger’s bold leadership and said the company was “going through a massive transformation to capitalize on the tremendous opportunities ahead.”

More recently, Intel has focused on discounting. In addition to efforts to cut jobs and expenses, the chipmaker scrapped plans for its annual innovation event. It also recently sold its stake in chip technology maker Arm Holdings Plc.

–With assistance from Debby Wu.

(Updates with Intel confirmation in second paragraph.)

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