Intel board member resigns amid disputes over AI strategy and workforce

Lip-Bu Tan, a high-profile board member at Intel, has resigned after disagreeing with CEO Pat Gelsinger and other directors over the company’s workforce size, risk-averse culture, and lagging AI strategy. His departure follows rising concerns that Intel’s turnaround efforts, led by Gelsinger, are hindered by inefficiencies and outdated practices. Tan, a semiconductor industry veteran, had joined Intel’s board to help restore its leadership in the chip industry.

Tan reportedly grew frustrated with Intel’s bloated workforce, which he believed was burdened by excessive layers of middle management. Despite attempts to streamline the company through layoffs, Tan argued that Intel had failed to make the necessary cuts to its bureaucracy. As competition in AI heats up, particularly with Nvidia, Intel has been criticised for falling behind in the race to develop cutting-edge AI chips.

Intel’s challenges are exacerbated by its struggle to build a foundry business that aims to manufacture chips for other companies. Without a bigger customer, the industry has yet to turn a profit. Additionally, a $5.4 billion deal to acquire Israel’s Tower Semiconductor was blocked by China, further complicating Intel’s efforts to expand its contract manufacturing capabilities.

Intel’s future remains uncertain as the company grapples with internal inefficiencies, external competition, and geopolitical obstacles. Tan’s exit has left a significant void on Intel’s board, raising further concerns about its ability to compete in a rapidly evolving semiconductor industry.