(Bloomberg) — Intel Corp. CEO Lip-Bu Tan, a semiconductor industry veteran who was brought in two years ago to help the chip maker make a comeback, has stepped down from the board.
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Tan informed the board on Aug. 19 that he would leave effective immediately, Intel said in a filing on Thursday, confirming an earlier report by Bloomberg News. The executive, a former CEO of Cadence Design Systems Inc. who also runs an investment firm, cited “demands on his time” as the reason for the move.
“This is a personal decision based on the need to reprioritize several commitments and I continue to support the company and its important work,” he said in the filing.
The move follows a disastrous quarterly report earlier this month that sent Intel shares to their worst decline in decades. The once-dominant chipmaker issued a dire forecast, suspended its longstanding dividend and announced plans to lay off more than 15% of its workforce.
CEO Pat Gelsinger is trying 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. have only made bigger gains.
Tan was elected to Intel’s board of directors and appointed to its mergers and acquisitions committee in September 2022.
When Tan joined the board, he praised Gelsinger’s bold leadership, saying the company was “undergoing a massive transformation to take advantage of the tremendous opportunities ahead of us.”
Intel has been focused on cost cutting lately. In addition to its efforts to cut jobs and costs, the chipmaker also 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 the second paragraph.)
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