<div id="readability-page-1"><div>Lip-Bu Tan, a prominent board member at Intel Corp. INTC, resigned following disputes with CEO Pat Gelsinger and other directors over the company’s direction. The resignation was announced last week.What Happened: Tan, a semiconductor industry veteran, cited personal reasons for his departure, stating he needed to “reprioritize various commitments” but remained supportive of Intel’s mission. However, Reuters sources revealed that Tan was frustrated with Intel’s large workforce, risk-averse culture, and lagging artificial intelligence strategy.Tan’s exit leaves a significant gap in chip-industry expertise on Intel’s board. The former CEO of Cadence Design joined Intel two years ago to help restore its status as a leading global chipmaker. His responsibilities were expanded in October to include overseeing manufacturing operations.Intel has faced significant challenges, including layoffs, a paused dividend, and reduced capital spending. The company is also preparing for a potential activist shareholder attack, having hired Morgan Stanley to assist in its defense, according to the Reuters report. Intel did not immediately respond to Benzinga's request for comment.See Also: US Stocks Set For Positive Start, Small-caps Likely To Sizzle: What’s Going OnWhy It Matters: The resignation of Lip-Bu Tan comes at a critical time for Intel. The company has been struggling with various financial and operational challenges. Recently, Intel reported weak second-quarter results, missing analyst expectations significantly. The company announced a new cost reduction plan, including a 15% headcount reduction, which has affected its stock performance.Additionally, Intel’s efforts to revive its AI strategy have been under scrutiny. The semiconductor sector is increasingly divided between AI winners and losers, with companies like NVIDIA Corp. NVDA leading the way. Analysts have emphasized the importance of prioritizing AI to stay competitive in the industry.Furthermore, Intel’s recent negotiations with SoftBank Group Corp. to produce an AI chip reportedly fell through. This failure has shifted SoftBank’s focus to other manufacturers.Read Next: GOP Congress Member Nancy Mace: ‘They Haven’t Done Anything,’ Slams DNC Cannabis Inaction, Calls Out Republican ReluctanceImage Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote</div></div>

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Lip-Bu Tan, a board member at Intel Corp., has resigned amid disputes with CEO Pat Gelsinger and other directors about the company's direction. Tan cited personal reasons but expressed frustration over Intel's workforce and AI strategy. His departure raises concerns given Intel's recent financial struggles, including layoffs and poor second-quarter results. The company is also preparing for potential activist shareholder interventions and has faced setbacks in its AI chip negotiations with SoftBank. Tan's exit underscores challenges Intel continues to face in the semiconductor industry.

- Lip-Bu Tan resigned from Intel Corp's board due to disputes with CEO Pat Gelsinger and directors over the company's direction, citing personal reasons for departure but expressing frustration with Intel's workforce and AI strategy.
- Tan's departure creates a gap in chip-industry expertise on Intel's board, impacting the company's efforts to restore its position as a leading chipmaker amidst challenges like layoffs and reduced capital spending.
- Intel's struggles include missed analyst expectations, a cost reduction plan with layoffs, and challenges in AI strategy, as seen in failed negotiations with SoftBank for an AI chip production deal.

Intel Board Member Lip-Bu Tan Reportedly Left After Disputes With CEO And Other Directors Over Company's Direction