Intel’s embattled new chief Lip-Bu Tan is reportedly locked in a power struggle with members of the chipmaker’s board — a clash thrust into the spotlight after President Trump called for his removal.
Intel’s embattled new chief Lip-Bu Tan is reportedly locked in a power struggle with members of the chipmaker’s board — a clash thrust into the spotlight after President Trump called for his removal.
The tensions, which have been simmering since Tan took the helm in March, center on whether Intel should remain in the costly business of manufacturing its own chips or exit the segment entirely, people familiar with the matter told the Wall Street Journal on Friday.
Tan has pushed to keep Intel’s foundry operations, arguing they are essential for American technology independence.
Some board members, led by chairman Frank Yeary, have pushed to spin off or sell the unit, which has been losing money despite accounting for about a third of Intel’s revenue last year, according to the Journal.
Yeary held talks with companies like Nvidia and Amazon about buying pieces of the business, according to the Journal. He is also reported to have explored selling the firm to Taiwanese chip giant TSMC, though that idea went nowhere.
The disagreement has stalled key initiatives, such as a planned multibillion-dollar fundraising effort to expand chip plants, which was delayed after Yeary and others urged moving at a slower pace.
Talks to acquire an artificial intelligence firm — viewed by Tan as critical to catching rivals like Nvidia and AMD — have also dragged, with another buyer now close to sealing the deal, according to the Journal.
Strategic partnerships have fallen through, and Tan has told associates he feels hamstrung in his efforts to turn Intel around, the Journal reported.
