Resignation of Top Executive: Intel in Turmoil

Lip-Bu Tan, a central figure in the high-tech industry, has resigned from Intel’s board of directors after a two-year tenure. This decision, effective immediately according to a filing with the U.S. Securities and Exchange Commission (SEC), comes at a particularly challenging time for Intel. The company is grappling with financial difficulties and is planning extensive restructuring, which includes the layoffs of over 15,000 employees. "I am grateful for the opportunity to have served on Intel’s board," said Lip-Bu Tan, adding that this was a personal decision to reprioritize various commitments. He emphasized that he continues to support the company and its important work. Following the resignation, Intel recorded a 6.1% drop in its stock price, as reported by SeekingAlpha. Lip-Bu Tan, former CEO and current Executive Chairman of Cadence, joined Intel’s board of directors in 2022. At that time, the company announced its IDM 2.0 strategy to become a significant contract manufacturer for semiconductors. Tan’s investment firm, Walden International, has invested in companies and startups in the fields of semiconductors, alternative energies, and digital media in the U.S. and Asia. These investments include Ambarella, Creative Technology, S3 Graphics, and Sina Corp., the latter operating Weibo, a leading Chinese microblogging site. With his extensive experience at Cadence and Walden International, Tan was a valuable member of Intel’s board of directors. The board consists of a total of 12 directors, including Chairman Frank D. Yeary, who has spent his entire career in the financial industry. Two directors have an academic background in electrical and computer engineering and experience in a semiconductor company. Other members, including Pat Gelsinger and Stacy Smith, are either current or former Intel executives. Others have worked in various industries. Intel’s shares suffered a dramatic plunge of around 30%, erasing about $39 billion in market value within a few days from the end of July to early August. On July 31, Intel’s market capitalization was $130.86 billion at the close of trading on the NYSE. After reports of massive layoffs, it fell to $123.96 billion on August 1. Following the financial report and a significant loss of $1.6 billion, the value further dropped to $91.86 billion. Currently, the market capitalization stands at $88.43 billion, representing a loss of more than half of its market value since the beginning of the year.