Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/intel-board-member-quit-after-differences-over-chipmakers-revival-plan-reuters.20863/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

Intel board member quit after differences over chipmaker's revival plan - Reuters

C

count

Well-known member
The drama continues.

  • Tan saw workforce as bloated, culture risk-averse
  • Tan's exit leaves a vacuum of chip-industry expertise on Intel's board
  • Intel's struggles led to layoffs, paused dividend, slashed capital spending
  • Intel's foundry business plan faces challenges without major customers or expertise
SAN FRANCISCO, Aug 27 (Reuters) - The sudden resignation of a high-profile Intel (INTC.O) board member came after differences with CEO Pat Gelsinger and other directors over what the director considered the U.S. company’s bloated workforce, risk-averse culture and lagging artificial intelligence strategy, according to three sources familiar with the matter.

Lip-Bu Tan, a semiconductor industry veteran, had said he was leaving the board because of a personal decision to “reprioritize various commitments” and that he remained “supportive of the company and its important work,” in a regulatory filing on Thursday.


I personally agree with Lip-Bu Tan's decision. Intel has a lot of bloat to shed, and it's IDM 2.0 strategy is a trainwreck.
 
Last edited by a moderator:
I hope Intel mgmt will follow Tan’s advice and focus the manpower cut on middle management. From observations and experience, middle management often does not serve practical purpose. They often try to make themselves relevant and as a result frustrate those talents below them. If anything , they serve as a scapegoat for higher management to shift the blame of any failure to them. It’s a very costly ‘ lifeboat’ that Intel doesn’t need at this juncture.
 
Tan resigning over difference of opinion while being the only member of the board who actually has significant semi experience is dreadful news. I would have hoped that Intel could have eaten some humble pie by now and accepted outside perspectives.
 
count said:
The drama continues.

  • Tan saw workforce as bloated, culture risk-averse
  • Tan's exit leaves a vacuum of chip-industry expertise on Intel's board
  • Intel's struggles led to layoffs, paused dividend, slashed capital spending
  • Intel's foundry business plan faces challenges without major customers or expertise
SAN FRANCISCO, Aug 27 (Reuters) - The sudden resignation of a high-profile Intel (INTC.O) board member came after differences with CEO Pat Gelsinger and other directors over what the director considered the U.S. company’s bloated workforce, risk-averse culture and lagging artificial intelligence strategy, according to three sources familiar with the matter.

Lip-Bu Tan, a semiconductor industry veteran, had said he was leaving the board because of a personal decision to “reprioritize various commitments” and that he remained “supportive of the company and its important work,” in a regulatory filing on Thursday.


I personally agree with Lip-Bu Tan's decision. Intel has a lot of bloat to shed, and it's IDM 2.0 strategy is a trainwreck.
Click to expand...

From Routers:
"Tan grew frustrated as the board did not follow his recommendations over how to make the manufacturing business more customer-centric and to remove unnecessary bureaucracy, a person close to Tan said."

Take a look the TSMC's Board of Directors. It looks like a NFL professional team roster while Intel Board of Directors are more like a college team, at best.

investor.tsmc.com

Board of Directors - Taiwan Semiconductor Manufacturing Company Limited

TSMC's Board of Directors consists of nine distinguished members with a great breadth of experience as world-class business leaders or professionals. We deeply rely on them for their diverse knowledge, personal perspectives, and solid business judgment. F
investor.tsmc.com investor.tsmc.com
 
count said:
The drama continues.

  • Tan saw workforce as bloated, culture risk-averse
  • Tan's exit leaves a vacuum of chip-industry expertise on Intel's board
  • Intel's struggles led to layoffs, paused dividend, slashed capital spending
  • Intel's foundry business plan faces challenges without major customers or expertise
SAN FRANCISCO, Aug 27 (Reuters) - The sudden resignation of a high-profile Intel (INTC.O) board member came after differences with CEO Pat Gelsinger and other directors over what the director considered the U.S. company’s bloated workforce, risk-averse culture and lagging artificial intelligence strategy, according to three sources familiar with the matter.

Lip-Bu Tan, a semiconductor industry veteran, had said he was leaving the board because of a personal decision to “reprioritize various commitments” and that he remained “supportive of the company and its important work,” in a regulatory filing on Thursday.


I personally agree with Lip-Bu Tan's decision. Intel has a lot of bloat to shed, and it's IDM 2.0 strategy is a trainwreck.
Click to expand...

I will see him on Thursday, will let you know.
 
Something that doesn’t quite make sense: If Lip-Bu Tan believed that Intel needed to become leaner, it’s strange that he would leave a few weeks after Intel announced layoffs. Unless the layoffs happen after his resignation or they’re not being conducted in a way he supports it would seem like Intel was addressing exactly his concerns. His loss on the board is significant and as others point out it appears that Intel’s board is quite anemic on semi talent compared to TSMC.
 
DepthFirst said:
Something that doesn’t quite make sense: If Lip-Bu Tan believed that Intel needed to become leaner, it’s strange that he would leave a few weeks after Intel announced layoffs. Unless the layoffs happen after his resignation or they’re not being conducted in a way he supports it would seem like Intel was addressing exactly his concerns. His loss on the board is significant and as others point out it appears that Intel’s board is quite anemic on semi talent compared to TSMC.
Click to expand...
The board could hire Brian Harrison, Mike Splinter, Wei Jen Lo, Kevin Zhang. It would be like the TSMC Ghosts of Intel Past joining the board.

FYI: According to some Intel people, Laying off 15000 people leaves Intel with at least 10,000 too many people. Every group has "assistant to the regional manager", "Assistant Regional Manager", and "Chief of staff to the assistant regional manager". Michael Scott would be so proud
 

x.com

x.com x.com
Rumor from Ming-Chi Kuo (analyst):
"I'm told that one of the main reasons for Lip-Bu Tan's departure from Intel's board of directors is to join the spin-off committee. This move is to ensure that he can help Intel plan the potential spin-off of chip design and foundry operations from a neutral and objective standpoint. There have long been rumors that Intel may spin off its chip design and foundry businesses. While no decision has been made, this is the closest moment Intel has come to a spin-off."
 
Maximus said:

x.com

x.com x.com
Rumor from Ming-Chi Kuo (analyst):
"I'm told that one of the main reasons for Lip-Bu Tan's departure from Intel's board of directors is to join the spin-off committee. This move is to ensure that he can help Intel plan the potential spin-off of chip design and foundry operations from a neutral and objective standpoint. There have long been rumors that Intel may spin off its chip design and foundry businesses. While no decision has been made, this is the closest moment Intel has come to a spin-off."
Click to expand...
Intel manufacturing can’t survive without their internal customer committed to their leading edge. Spun off CCG has all the reasons to choose TSMC over IFS. They have a better to leadership technology and most important they deliver and have a customer service mindset that still doesn’t exists in IFS. Too many old people there that don’t understand foundry and customer service and argue among themselves. The IFS senior leadership all need to go including most of the VPs and fellows from the past.

For IFS to survive they must if CCG as don’t company they can be independent if they aren’t what spin off now. Perhaps after I14A maybe possible in 2027, but not before.

So the challenge at hand how to deal with the 10B or more loss over the next couple years!
 
You must log in or register to reply here.
Back
Top