Intel faces new challenges in its turnaround strategy under CEO Lip-Bu Tan because President Donald Trump demanded his resignation because of his business ties with Chinese companies.
Since his six-month tenure Tan has reduced factory expansion plans because of declining chip demand which led to Ohio project delays and the cancellation of TSMC contract manufacturing competition ambitions. Trump has criticized these moves while demanding more U.S. spending similar to Apple’s and Nvidia’s multi-billion-dollar domestic investments.
The president labeled Tan as “highly conflicted” because of his investments in Chinese companies that have military connections. The market participants worry that this conflict will divert attention away from cost reduction and strategic execution. The stock price of Intel has remained unchanged throughout 2024 following its significant decrease in 2023.
Tan who has lived in the United States for 40 years declared his dedication to the company while receiving backing from the board of directors. The extended period of leadership uncertainty about Tan threatens to impede Intel’s path toward recovery.
