In a regulatory filing on Thursday, Lip-Bu Tan, a veteran of the semiconductor industry, claimed he was leaving the board due to a personal decision to "reprioritise various commitments" and that he remained "supportive of the company and its important work. "

The former CEO of chip-software company Cadence Design joined Intel's board two years ago as part of a grand plan to restore Intel's dominance as the leading global chipmaker.

The board even expanded Tan's responsibilities in October 2023, giving him oversight of manufacturing operations.

However, Tan grew increasingly frustrated with the company's large workforce, its approach to contract manufacturing, and Intel's risk-averse and bureaucratic culture. The circumstances surrounding Tan's exit have not previously been reported, and most newspapers seem to be quoting unnamed sources.

However, the departure of this industry veteran, well-regarded by investors, over Intel's strategy highlights the uncertainty of its turnaround efforts.

Tan leaves as the company endures one of the bleakest periods in its five-decade history, former executives said, leaving it vulnerable to a potential activist shareholder attack.

According to sources familiar with the matter, Intel has even hired investment bank Morgan Stanley to prepare a defence, confirming an earlier report.