Intel CEO Lip-Bu Tan is facing a tall order as he tries to turn around the struggling tech titan. Since taking over the position in March, Tan has encountered a difficult landscape marked by layoffs and cuts in the foundry division. His leadership comes at a time when Intel struggles to establish a foothold in the rapidly growing artificial intelligence market.
Tan, whose seat on Intel’s board of directors was won in 2022 expected the speedy replacement for ex-CEO Pat Gelsinger. Unfortunately, his first months have not made this easy. As he seeks to reshape the company’s future, he’s juggling that challenge with the financial pressures the company still faces now. In a recent conference call with analysts, Tan acknowledged the hurdles ahead, stating, “Turning the company around will take time and require patience.”
Just last week, Sen. Tom Cotton, R-Ark., questioned Tan for his supposed involvement with Chinese things. Congress’s questioning was a symptom of expanding concerns related to corporate governance and national security. This question goes even deeper to complicate Tan’s balancing act as he tries to restore Intel’s lost market luster.
Under Tan’s leadership, Intel is focused on building its foundry business for chip manufacturing, despite burning cash in the process. As the company continues to find its footing in the emerging artificial intelligence space. This region is particularly important due to its innovative growth strategy.
In spite of these hurdles, Tan has found solid backing from well-known Republicans, including the former President Donald Trump.… I had a great meeting yesterday with @TAnChun Tan and @cabinetapp members which was organized by @myawesomeguy82. @realDonaldTrump Trump said he really loved @TAnChun Tan’s career path.
“The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week. Thank you for your attention to this matter!” – Donald Trump
Meanwhile, Tan literally works around the clock to steer Intel back to the black. He now faces the double challenge of reordering the company and dealing with the intense outside political scrutiny. The next few months are going to be very important. Only time will tell if his plans will enable Intel to regain its former glory in the cutthroat tech world.