Lip-Bu Tan, a prominent figure in the semiconductor industry and former CEO of Cadence Design Systems, has stepped down from Intel Corp’s board of directors, effective immediately. Tan, who joined Intel’s board in September 2022, attributed his departure to personal reasons, citing the need to reprioritize his various commitments.
During his tenure, Tan served on Intel’s mergers and acquisitions committee. His resignation comes at a time when Intel is navigating a challenging landscape. The company reported a 0.9% year-on-year decline in revenue for the second quarter, falling short of analyst expectations. In response, Intel announced a $10 billion cost-reduction plan, including plans to cut its workforce by more than 15%. However, Goldman Sachs analyst Toshiya Hari expressed concern that these measures may not be sufficient to drive a turnaround.
Despite the challenges, Intel remains committed to its growth strategy in the artificial intelligence sector. The company aims to ship chips for over 100 million AI personal computers by 2025, with over 40 million slated for 2024.
Intel’s stock has faced significant downward pressure over the past year, plummeting by 39%. Currently, it trades at a forward price-to-earnings multiple of 17.39x. On Friday, INTC shares rose 2.91% to close at $20.69.
Tan’s departure from Intel’s board adds another layer of complexity to the company’s ongoing efforts to regain its position as a leader in the semiconductor industry. It remains to be seen how these developments will impact Intel’s future prospects.
