The CEO of the US chipmaker Intel has been urged by President Donald Trump to step down “immediately” after being accused of having problematic ties to China. He said that CEO Lip-Bu Tan was “highly conflicted” in a social media post, seemingly alluding to Mr Tan’s purported interests in businesses the US claims have ties to the Chinese military.
It is uncommon for a president to order a company CEO to quit. Mr Tan was brought on board in March with the goal of revitalising the tech giant, which was a pioneer in the US chips sector but has recently lagged behind rivals. As part of the endeavour to revive America’s semiconductor manufacturing sector, the US government has given it billions of dollars. Intel said in a statement on 7 August that it was supporting Trump’s “America First agenda” by making large investments in the US.
According to Intel, Lip-Bu Tan, the Board of Directors, and the firm are all steadfastly dedicated to furthering the economic and national security objectives of the United States. The business went on to say that it anticipates continuing to work with the administration.
Intel Limiting its Footprints in USA
Mr Tan, a venture capitalist renowned for his proficiency in the semiconductor sector, is a naturalised US citizen who was born in Malaysia and brought up in Singapore.
In a recent update to investors, he stated that in order to meet consumer demand, the company would be reducing its production investments, including those in the US. In an attempt to “right-size” the company, Intel has already laid off thousands of employees this year.
Stock Market Reacts to Trump’s Comments
Trump, who has previously criticised the company and is planning to increase taxes on the semiconductor industry, attacked Intel, causing its shares to drop more than 3% by midday. Trump stated that Intel’s CEO is extremely conflicted and ought to step down right away. This problem can’t be solved in any other way. But, as both Democrats and Republicans publicly express concerns about national security, Washington has tightened restrictions since Trump’s first term, pushing to sever commercial links between the US and China in the area of advanced technology.
National Security Concerns Intensify
Republican Senator Tom Cotton expressed worries about Trump’s criticism in a letter to Intel’s board this week, stating that Mr Tan’s affiliations cast doubt on Intel’s capacity to manage American taxpayer funds responsibly and adhere to relevant security laws.
Cotton cited Mr Tan’s position as the long-time CEO of Cadence Design Systems, a tech company that entered a guilty plea in July and agreed to pay $140 million to the US over allegations that its Chinese subsidiary had violated US export controls by repeatedly doing business with the nation’s National University of Defence Technology.
As part of a company-wide restructuring spearheaded by new CEO Lip-Bu Tan, Intel Corporation has announced a new round of layoffs that will impact 2,400 more employees, bringing the total number of job cuts to almost 4,000 nationwide.
Almost 2,400 jobs will be lost in Oregon alone, making this one of the biggest tech layoffs in Oregon’s history. The cuts will be implemented by mid-July and will affect several US states, including California, Arizona, and Texas.
Intel, a major R&D centre with more than 20,000 employees in Oregon, will lay off more than 1,500 workers at its Ronler Acres complex in Hillsboro. The action highlights the company’s changing priorities and budgetary limitations in the face of the semiconductor industry’s rapid transformation.
Intel-Oregon’s Tech Pillar
Intel has long been a mainstay of Oregon’s tech economy and the state’s largest employer in the private sector. The average annual pay for semiconductor employment in the state is $180,000, which is far more than the state median.
It is anticipated that the layoffs will have an effect on consumer spending and state tax receipts throughout the Oregon economy. CEO Lip-Bu stated that Intel was truly in the lead twenty or thirty years ago. According to reports, earlier this week, Tan informed staff, “Now… we are not in the top 10 semiconductor companies,” highlighting the need for a restructuring.
It has taken years for Intel to start declining. It has lost its position as the undisputed leader in the global semiconductor business to Taiwan Semiconductor Manufacturing Co. (TSMC), which now provides cutting-edge processors to firms like Apple and Nvidia.
Intel Failed to Capture AI Chip Market
Additionally, Nvidia, which produces the GPUs that power the majority of massive AI models and data centres, has surpassed Intel in the market for AI chips. Tan acknowledged that Intel must now shift its focus to related AI and edge computing technologies since it is “too late” to lead in AI training chips.
A significant restructuring of Intel’s core business is indicated by the company’s decision to leave the automotive chip business, outsource its marketing to Accenture, and reduce employment in the Foundry Division by 20%. Known for his experience in semiconductors and venture finance, including his work with Cadence Design Systems, Lip-Bu Tan assumed the role of CEO earlier this year.
His strategy mainly focusses on optimising processes and bringing Intel back to profitability through technological alliances and cost reductions. Intel continues to collect about $260 million in tax benefits from Oregon each year while restructuring is going on; this could come under scrutiny if future expansion plans are postponed or abandoned completely.
According to various media reports, chipmaker Intel is closing its automotive branch and terminating the majority of its workforce. In the communication, the corporation stated that it intends to shut down its automotive Intel architecture division.
It further stated that although it will complete current obligations to clients, “the majority” of the employees in that company will be let go.
Intel clarified in a written statement to a media house that, in order to best serve its customers, the company is once again concentrating on its core client and data centre technologies.
Intel has made the decision to shut down its automotive division under its client computing segment as part of this effort. The company is trying to make sure that its clients have a seamless transition.
Intel Already Made Heavy Investment in Automotive Semiconductors
Over the years, Intel has made significant investments in automotive semiconductors. More than 50 million automobiles have utilised Intel’s processors in infotainment systems, instrument clusters, and other automotive applications.
The business unveiled AI-enabled chips in 2024 with the goal of improving voice assistants and in-car navigation. Additionally, it revealed ambitions to introduce its Arc GPU into automobiles.
Intel currently seems to be leaving the market despite these changes. The change is a component of CEO Lip-Bu Tan’s larger restructuring initiatives, which are intended to reduce expenses and streamline operations.
Layoff a Common Feature of Intel
The automotive unit’s closure comes as Intel announced more widespread layoffs. The company’s Santa Clara headquarters will lay off 107 workers, according to a recent WARN warning it issued in California.
According to an Intel representative who spoke to a media outlet, Intel will be able to improve customer service and execution by simplifying its organisation and giving its engineers more authority.
There will likely be further layoffs in Intel’s foundry group. Tan informed staff in April that in order to increase operational efficiency, Intel would need to “reduce the size” of its workforce by the second quarter of 2025. With additional cost reductions scheduled for 2026, the chipmaker is aiming to save $500 million this year.
Year 2025 Marked as Year of Layoffs
With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.
Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.
Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.
According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.
Intel is getting ready to start laying off a large number of employees at its production facilities in the middle of July. This will be the company’s first significant layoff since Lip-Bu Tan became CEO in March.
The layoffs, which are anticipated to finish by the end of the month, are a part of a larger strategic reorganisation as the business looks to improve its competitiveness in the global semiconductor market and streamline operations.
The Oregonian/OregonLive examined an internal memo that confirmed the layoff timeframe but did not specify the precise locations or the number of people that would be affected.
Various media reports claim that individual business units have been given the freedom to handle the cuts as long as they adhere to the financial standards set by upper management.
Layoffs Are Part of Company’s Transformational Goal
The corporation has presented the layoffs as necessary for its continuous change. According to a statement from Intel, simplifying the organisation and giving engineers more authority will help the company better meet customer needs and improve execution.
Additionally, it highlighted that these decisions were reached after “careful consideration” and promised that the affected staff will get respectful and compassionate treatment.
The action is a response to mounting pressure on Intel to address enduring issues, such as declining demand in the PC and laptop markets, declining sales, and heightened rivalry in the semiconductor industry, especially in the artificial intelligence (AI) domain.
Analysts have frequently highlighted Intel’s weakness in the AI-focused hardware market, while rivals like Nvidia and AMD have risen to the top. Although this most recent round of layoffs is the first under Tan’s direction, Intel’s employees have had a challenging recent past.
Under then-CEO Pat Gelsinger, the business eliminated over 15,000 jobs in 2023, including about 3,000 in Oregon alone. With an estimated 20,000 employees based in Washington County, Intel continues to be the largest private-sector employer in Oregon despite these layoffs.
Tan Already Hinted About Layoffs in April
Intel employees in Oregon have been speculating about potential layoffs since Tan hinted at potential reductions during an investor call in April, but he did not provide specifics or a comprehensive strategic plan.
Staff members’ discontent has grown as a result of this ambiguity, and they have expressed their worries about what they see to be a lack of transparency from senior management. Since taking over as CEO, Tan has kept a noticeably lower public profile than his predecessor.
However, later this year, he is anticipated to provide a thorough restructuring strategy.
According to industry observers, this strategy will put a higher priority on bolstering Intel’s production capacity, growing its AI presence, and regaining investor trust—all while putting the company in a better position to handle the fiercely competitive semiconductor market.
In the upcoming months, Intel’s long-term strategy will probably be closely examined by both staff members and market observers as the business enters this challenging period of its transformation.
According to a media report, tech giant Intel Corporation intends to announce layoffs at some point this week. The report further revealed that the job cuts would involve a personnel reduction of more than 20% in order to “eliminate bureaucracy”.
Intel’s layoffs are intended to “streamline management and rebuild an engineering-driven culture”. The chip giant undergoes significant reorganisation under its new CEO, Lip-Bu Tan who took over company’s operations in March 2025.
In an effort to turn around the faltering chipmaker, more than 20% of Intel’s workforce would be let go. After years of lagging behind Nvidia in artificial intelligence (AI) processors, Tan hopes to challenge competitors with this move.
Dropping Sales Figures Resulting in Layoffs
Intel has previously implemented layoffs in an effort to improve its financial status. Up to 15,000 workers were let go in August 2024, bringing the company’s total workforce to 108,900 at the end of the year. Intel employed 124,800 people in 2023, the year before.
Due to Nvidia’s technological advancements, the Santa Clara-based traditional chipmaker has recorded three years in a row of dropping sales and red statistics. Tan has promised to develop more interesting products and spin off Intel assets that aren’t essential to its purpose.
Tan said at the Intel Vision conference in March that Intel needed to repair its balance sheet, replace the engineering expertise it lost, and better align its manufacturing processes with the demands of prospective customers.
Tan will have a crucial chance to further lay out his strategic perspective on 24 April when Intel releases its first-quarter earnings. Wall Street does not anticipate that Intel will return to its previous sales heights very soon, if at all, even though analysts say the company’s revenue drops are now at their most severe.
Tan was hired after Pat Gelsinger, the previous CEO, left last year due to his inability to carry out his recovery strategy.
Gelsinger had adopted a bold and costly plan to increase Intel’s production capacity and re-establish the company as a significant force in the custom chip industry.
Layoffs have Become a Common Scenario in 2025
With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025. Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.
Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.
According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.
Lip-Bu Tan is well-known for implementing strategic plans and leadership in the technology and semiconductors domains. As the newly appointed CEO of Intel, Tan brings his expertise and forward-thinking approach to one of the world’s most influential tech companies.
In addition, his appointment leads to a new chapter for Intel as it brings the fast-changing scenario of semiconductors, artificial intelligence, and global competition. He has played a pivotal role in shaping the future of technology as an investor, entrepreneur, and executive for more than three decades.
His leadership at Intel is expected to drive innovation, strengthen the company’s market position, and address the challenges of an increasingly complex industry.
Lip-Bu Tan – Biography
Name
Lip-Bu Tan
Born
November 12, 1959, in Muar, Johor, Malaysia
Nationality
Malaysian-American
Education
B.S. in Physics, Nanyang University, Singapore, M.S. in Nuclear Engineering, Stanford University, MBA, University of San Francisco
Occupation
Chairman of Walden International, Founding Managing Partner of Walden Catalyst Ventures, CEO of Intel Corporation, Business Executive, Investor
Lip-Bu Tan was born in 1959 in Malaysia and is deeply interested in science and technology. He earned a degree in physics at Nanyang University before his higher studies at the Massachusetts Institute of Technology (MIT), where he earned a Master’s degree in nuclear engineering.
Tan later completed an MBA at the University of San Francisco once he recognized the importance of business acumen in the tech industry,
Lip-Bu Tan – Early Career and Rise to Leadership
Tan’s career began in the engineering sector, where he worked on advanced technologies and gained hands-on experience in the semiconductor industry. However, his true calling lay in the intersection of technology and investment.
In the early 1990s, Tan transitioned into venture capital, joining Walden International, a global l firm focused on technology investments. At Walden International, Tan quickly rose with the help of ranks, eventually becoming the firm’s Chairman and CEO.
Under his leadership, Walden International became one of the most influential venture capital firms, investing in groundbreaking companies such as Cadence Design Systems, SINA Corporation, and SMIC (Semiconductor Manufacturing International Corporation).
Tan’s ability to identify and nurture innovative startups earned him a reputation as a visionary investor. Tan’s success in venture capital was not limited to financial returns.
He played a pivotal role in shaping the global semiconductor industry by investing in companies that pushed the boundaries of technology. His deep understanding of the semiconductor ecosystem and ability to foresee industry trends made him a sought-after advisor and leader in the tech world.
Upon his appointment, Tan outlined a strategic vision to revitalize Intel:
Operational Restructuring: Tan plans to overhaul Intel’s manufacturing processes, focusing on artificial intelligence (AI) chip production. He aims to streamline operations by reducing middle-management layers to enhance decision-making efficiency.
Workforce Optimization: In response to financial challenges, including a reported $19 billion loss, Tan has indicated that “tough decisions” are imminent, suggesting potential layoffs to improve operational efficiency.
Market Performance: Following the news of Tan’s appointment, Intel’s stock experienced a significant surge, reflecting investor confidence in his leadership. However, recent fluctuations indicate ongoing market volatility.
Lip-Bu Tan – The Road Ahead for Intel (2025 Update)
As Lip-Bu Tan enters as CEO of Intel in 2025, the tech giant is undergoing a transformative phase under his leadership. The semiconductor industry continues to evolve at a breakneck pace, with advancements in artificial intelligence (AI), quantum computing, and advanced chip manufacturing reshaping the global tech landscape.
Tan’s strategic vision and hands-on approach have positioned Intel to not only make these changes but also to lead the charge in innovation and sustainability.
Lip-Bu Tan – Intel and Achievements
Taking the Helm at Intel
In 2025, Lip-Bu Tan was appointed CEO of Intel, succeeding Pat Gelsinger. His appointment came at a critical time for Intel, as the company faced intense competition from rivals like AMD, NVIDIA, and TSMC, as well as the need to innovate in areas such as AI, quantum computing, and advanced semiconductor manufacturing.
Tan’s leadership is expected to bring a fresh perspective to Intel, focusing on strategic partnerships, R&D investment, and global expansion. His deep understanding of the semiconductor ecosystem and his experience in venture capital make him uniquely qualified to steer Intel through the challenges of the 21st century.
Strategic Vision for Intel
Under Tan’s leadership, Intel has seen a resurgence in its financial performance. In 2025, the company reported record revenues, driven by strong demand for its AI chips, data center solutions, and consumer electronics.
Intel’s stock price has also seen significant gains, reflecting investor confidence in Tan’s strategic vision and the company’s ability to execute its goals. The following are some of Intel’s goals under Tan’s leadership:
Accelerate Innovation
Tan has urged investors to invest in cutting-edge technologies, including AI, machine learning, and quantum computing. He aims to position Intel as a leader in these fields and ensure the company remains at the forefront of technological advancement.
Strengthen Manufacturing Capabilities: Recognizing the importance of semiconductor manufacturing, Tan has prioritized expanding Intel’s fabrication facilities and improving its production processes. This includes investing in next-generation chip technologies and reducing reliance on external foundries.
Global Expansion: Tan is focused on expanding Intel’s presence in key markets, particularly in Asia, where demand for semiconductors is rapidly growing. He has also emphasized the importance of building strong relationships with governments and industry partners to secure Intel’s position in the global supply chain.
Sustainability and Corporate Responsibility: Tan has committed to making Intel a leader in terms of sustainability, with a key focus on reducing the company’s carbon footprint and promoting ethical business practices.
Navigating Industry Challenges
The semiconductor industry faces unprecedented challenges, including supply chain disruptions, geopolitical tensions, and increasing demand for advanced chips. Tan’s strategic vision and leadership are expected to help Intel navigate these challenges and ensure the company remains competitive in a rapidly changing landscape.
Lip-Bu Tan – Wealth and Influence
Lip-Bu Tan’s wealth primarily stems from his successful career in venture capital and his leadership roles in the tech industry. As the CEO of Intel, he is one of the highest-paid executives in the semiconductor sector, with a compensation package that includes salary, bonuses, and stock options.
Beyond his financial success, Tan wields significant influence in the tech industry. He sought after for his insights on technology trends, investment strategies, and the future of the semiconductor industry. His leadership at Intel is expected to improve the global tech ecosystem, influencing everything from AI development to supply chain dynamics.
Lip-Bu Tan – Awards and Recognitions
Lip-Bu Tan has received numerous awards and honors throughout his career, recognizing his contributions to the technology and venture capital industries. Some of his most notable accolades include:
Ernst & Young Entrepreneur of the Year (2005): Awarded for his outstanding contributions to the tech industry.
Global Semiconductor Alliance (GSA) Leadership Award (2012): Recognized for his leadership and impact on the semiconductor industry.
Forbes Midas List (Multiple Years): Named one of the top venture capitalists in the world for his successful investments in tech startups.
IEEE Robert N. Noyce Medal (2020): Awarded for his exceptional contributions to the microelectronics industry.
Lip-Bu Tan – Interesting Facts
Venture Capital Pioneer: Before joining Intel, Tan was one of the most successful venture capitalists in the tech industry, with investments in over 100 companies.
Global Perspective: Tan’s international background and experience give him a unique perspective on global markets, making him well-suited to lead Intel in an increasingly interconnected world.
Commitment to Innovation: Tan has consistently emphasized the importance of innovation, both in his venture capital career and as CEO of Intel.
Philanthropy: Tan is actively involved in philanthropic efforts, particularly in education and technology, supporting initiatives that promote STEM education and innovation.
Leadership Style: Tan is well-known for his collaborative and forward-thinking leadership style, he is respected for his ability to bring together diverse teams to achieve common goals.
Lip-Bu Tan – Famous Quotes
Lip-Bu Tan is known for his insightful and forward-looking statements on technology, leadership, and innovation. Here are some of his most memorable quotes:
“Innovation is the lifeblood of the tech industry. Without it, we cannot move forward.”
“The future of technology lies in collaboration—between companies, industries, and nations.”
“Leadership is not about being the smartest person in the room; it’s about bringing out the best in others.”
“The semiconductor industry is the backbone of modern technology. We must invest in it wisely.”
“Sustainability is not just a buzzword; it’s a responsibility we owe to future generations.”
Conclusion
Lip-Bu Tan’s journey from a young engineer in Singapore to the CEO of Intel is a testament to his vision, resilience, and leadership. Lip-Bu Tan’s leadership at Intel has been marked by bold initiatives, strategic partnerships, and a relentless focus on innovation.
As the semiconductor industry continues to evolve, Tan’s ability to anticipate trends and adapt to challenges has positioned Intel as a key player in the global tech ecosystem.
With a clear vision for the future and a commitment to sustainability and social responsibility, Tan is leading Intel into a new era of growth and success. The road ahead for Intel is bright, and under Lip-Bu Tan’s guidance, the company is well-positioned to shape the future of technology for years to come.
FAQs
Who is Lip-Bu Tan?
Lip-Bu Tan is a prominent figure in the technology industry, with involvement in venture capital and board positions, and has been involved with Intel. He is also the new CEO of intel.
What is Lip-Bu Tan’s vision for Intel?
His vision emphasizes a connected and sustainable world through technological advancements.
How does Lip-Bu Tan’s expertise benefit Intel?
His experience in the semiconductor industry can provide valuable insights and connections for Intel’s growth.
