Shocking decline of a Silicon Valley icon: Inside Intel's 20-year slide, and the case that could change all
, once the crown jewel of America's technology industry, is currently experiencing one of its most turbulent periods. A rare public call from a US president for the CEO's resignation has sparked a new round of uncertainty. The controversy follows two decades of missed opportunities, leadership changes, and intense global competition.
Finance
Value and Valuation Masterclass Batch-1
By CA Himanshu Jain
View Program
Finance
Value and Valuation Masterclass - Batch 2
By CA Himanshu Jain
View Program
Finance
Value and Valuation Masterclass - Batch 3
By CA Himanshu Jain
View Program
Artificial Intelligence
AI For Business Professionals
By Vaibhav Sisinity
View Program
Finance
Value and Valuation Masterclass - Batch 4
By CA Himanshu Jain
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
Intel's decline over the last two decades has been exacerbated by political pressure, with President Donald Trump demanding the resignation of CEO Lip-Bu Tan. Accusations, missed technological milestones, and fierce competition from TSMC and Samsung have weakened its position. Despite subsidies from the CHIPS Act, Intel must still demonstrate its ability to deliver.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Undo
How did Intel lose its power?
Intel was the clear leader in making computer chips twenty years ago. But a string of expensive errors caused the business to slowly go downhill. Intel spent $12 billion on acquisitions between the early 2000s and the middle of the 2010s. Most of these were in telecommunications and wireless technology, but they didn't make much money, as quoted in a report by Fortune.
The smartphone revolution was also a mistake for the company. Intel stopped making chips for BlackBerry devices based on ARM architecture and instead focused on its own x86 platform. The goal was to release a chip that could compete within a year. Instead, it took ten years, and by then, the market had moved on.
Live Events
ALSO READ:
Orca attack mystery: What really happened to marine trainer Jessica Radcliffe
Repeated delays in production hurt its reputation even more. In 2021, Intel's chips were two generations behind those made by Taiwan's TSMC and South Korea's Samsung. The company's plans to make smartphone chips fell through after several changes in leadership did little to stop the decline, as quoted in a report by Fortune.
Why is political pressure making things worse for Intel?
The most recent controversy started on August 7, when President Donald Trump posted on Truth Social asking Intel CEO Lip-Bu Tan to step down right away. Senator Tom Cotton wrote a letter to Intel's board saying that Tan was connected to dozens of Chinese companies and had broken export control rules while he was at another company, as quoted in a report by Fortune.
Tan answered employees, saying he hadn't done anything wrong and that he was committed to doing business in a fair way. Intel also put out a statement, which showed that they would keep working with the U.S. government. But the market reacted strongly; Intel shares dropped 5% that day, even though the rest of the market was doing well.
Can Intel get back to being the leader?
Intel is still the only American company that has the technology and know-how to make cutting-edge chips in the United States. This makes it a key player in both national security and the global tech race. But it hasn't made any of those chips in the US in eight years, as quoted in a report by Fortune.
The CHIPS and Science Act, which was passed in 2022, tries to fix this by giving semiconductor makers billions of dollars in subsidies. Intel is set to get about $8 billion in grants and extra loans, but a lot of the money will only be released after certain project milestones are met.
Industry experts say that the company's problems with execution may have already hurt its reputation and momentum. Some experts say that the U.S. should split Intel's manufacturing arm into its own company to make it easier to become the world's leading chipmaker. Some people say that even with large subsidies, success isn't guaranteed unless operations improve quickly, as quoted in a report by Fortune.
Intel has a long way to go, no matter what Tan does. It might be hard to find a new leader who is willing to take on the job because of the political spotlight and the size of the problems that lie ahead.
FAQs
Why is Intel's CEO being pressured?
US President Trump accused Lip-Bu Tan of conflicts of interest with Chinese companies, prompting calls for his resignation.
Why did Intel lose its market dominance?
Strategic errors, failed acquisitions, and production delays enabled rivals such as TSMC and Samsung to gain a competitive advantage.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
39 minutes ago
- Time of India
India-China Talks: Jaishankar And Wang Yi To Meet In High-Stakes Diplomacy Amid Tariff War
Chinese Foreign Minister Wang Yi's India visit marks a pivotal moment in South Asia's power balance. With tensions on the LAC still unresolved since Galwan and US tariff threats complicating India's strategic room, New Delhi's diplomacy faces its sternest test. Wang Yi meets External Affairs Minister S Jaishankar, NSA Ajit Doval, and PM Narendra Modi in a series of crucial talks aimed at confidence-building, trade recovery, and border de-escalation. Will this dialogue pave the way for durable peace, or is it yet another tactical pause in a tense standoff? India enters these negotiations with caution but also resolve, seeking to protect its sovereignty while balancing its global partnerships. The outcome will set the tone not just for bilateral ties, but also for India's role in Asia's shifting geopolitics.
Time of India
39 minutes ago
- Time of India
Lithium's rally is super-charged with speculative spice: Andy Home
News that Chinese battery giant Contemporary Amperex Technology (CATL) has suspended operations at its giant Jianxiawo mine has lit a fire under the lithium market. The CME lithium carbonate contract has surged by 27% since the start of August, breaking a long-running downtrend, with the bull momentum sweeping through the shares of listed producers. The market reaction is not irrational. Jianxiawo is China's largest lithium mine and even CATL's anticipated three-month suspension will make a significant dent in a massively over-supplied market. Nor is it the only Chinese producer in the lithium hub of Yichun facing heightened bureaucratic scrutiny. But the price surge looks over-exuberant. Any underlying market signal has been swamped by speculative excess on China's Guangzhou Futures Exchange. Guangzhou only started trading lithium carbonate futures in July 2023 but has muscled out the Wuxi Stainless Steel Exchange as China's primary price reference point for the battery metal. Wuxi was a problematic indicator of China's physical lithium market and Guangzhou is now also battling to contain a speculative frenzy. Guangzhou's lithium contract notched up turnover of nearly 24 million lots in July, far exceeding the previous monthly record, while open interest climbed to an all-time high of 699,164 lots. Trading activity in the options contract mushroomed from 2.9 million lots in June to 8.6 million last month. The exchange's volume figures denote both buy and sell transactions but, even allowing for this double-count, July's turnover was many multiples the size of a global market that is growing fast but still only amounts to around 1.6 million tons each year. The Guangzhou exchange implemented position limits, specifically targeting non-exchange members, at the end of July after the September contract had traded limit-up on two consecutive days. The measures seemed to be damping down the speculative heat until CATL made its announcement on August 11, at which stage the bull flames erupted again with the lithium price again going limit-up over the next two days. While some market participants, particularly industrial players, may have been aware of CATL's licence problems, the price volatility in itself has acted as a magnet for local speculators chasing the next big thing. Such crowd surges are commonplace in the Chinese commodities futures landscape and have the same effect as a giant momentum fund feeding on a fast-moving market. Last month's price action on the Guangzhou lithium contract was "a masterclass in sentiment-driven volatility," according to Paul Lusty, Head of Battery Raw Materials at price assessment agency Fastmarkets. Fastmarkets' view is that "beneath the surface demand remains tepid, inventories high and buyers cautious, underscoring a disconnect between price action and market reality." How much has actually changed in the wake of CATL's confirmation it needs to reapply for its expired mining licence? Chinese speculators are betting that it is symptomatic of a change in government policy. Beijing has taken aim at what it calls "disorderly price competition" with state media amplifying the attack on involution, a now-popular reference to competition so fierce it becomes self-destructive. Lithium is not the only market to have interpreted this as presaging a broader clamp-down on chronic excess capacity in China's industrial base. There have been equally exuberant rallies in steel, coal and polysilicon, a building-block for the over-heating solar panel sector. New Dawn? Whether this is really a new dawn for the bombed-out lithium price remains to be seen. The focus of the market, particularly in China, will be on whether CATL gets its new mining licence and what happens to the other producers clustered in Yichun. All of them are under scrutiny for possible discrepancies between their licensed mining rights and actual extraction rates, according to consultancy Project Blue. In a market that has been weighed down by excess production capacity, any sign of producer restraint, whether voluntary or involuntary, is a price positive. However, just how positive is going to depend on the Chinese speculators massing in the Guangzhou lithium market. The exchange's lithium futures contract has already recorded over 12 million trades so far in August. The speculative froth is still there.
&w=3840&q=100)
First Post
39 minutes ago
- First Post
China buying schools in UK: 1379-founded Wisbech Grammar among 30 now under Chinese owners
Chinese investors have been increasingly acquiring British private schools in recent years, sparking concerns among officials about potential influence from the Chinese Communist Party. Over the past decade, more than 30 independent schools have changed ownership. Chinese investors have increasingly acquired British private schools in the United Kingdom in recent years, raising concerns among officials about potential influence from the Chinese Communist Party. Over the past decade, more than 30 independent schools have changed hands, with regulators now reviewing additional large purchases. Sources in the Department for Education and UK security services, quoted by The Sunday Times, said they are worried about the trend but face challenges because China is not included on the government's enhanced list of countries posing national security risks. STORY CONTINUES BELOW THIS AD China's 'long game' in the UK A senior government source told The Sunday Times: 'China is playing the long game and doing all the things we used to do as an empire. They targeted universities before but have realised it's easier to start younger. It's ideological warfare. These children will grow up and be helpful to the Communist Party.' Labour MP Phil Brickell, a member of the foreign affairs committee, described Britain's 'world-leading education system [as] an obvious target for influence' and said it 'should be protected accordingly.' He added: 'Successive previous governments have misunderstood the strategic threat posed by China. The government must ensure that British interests are safeguarded.' Prime Minister Sir Keir Starmer has resisted calls from security agencies to place China on the enhanced tier of the Foreign Influence Registration Scheme (FIRS), which tracks individuals working for hostile states in the UK. Between 2017 and 2020, 17 schools were bought, often distressed institutions that investors aimed to fill with Chinese students or use to expand their brand in China. After a pause during the Covid years, acquisitions picked up again from 2022. By the end of last year, 30 schools were under Chinese ownership. Venture described these purchases as long-term investments with the potential for sustainable growth. Notable schools and their acquisition Notable schools include Thetford Grammar, founded in 1566 and now owned by China Financial Services Holdings, and Wisbech Grammar, established in 1379 and bought by Access Education. Several girls' schools, including Abbots Bromley and Ipswich High School, began admitting boys after being acquired. Malvern St James, purchased in February, announced in March that it would accept boys from September to appeal to the 'overseas international boarding market,' which favours mixed-sex schools. The decision sparked protests, with some girls wearing pink in objection.
