Intel: The Decline of an Iconic Company

Intel, once a leader in computer chip manufacturing, is facing a period of decline that began about 20 years ago. The company made multiple acquisitions, mainly in the telecommunications and wireless technology sectors, which ultimately failed.

Former US President Donald Trump called for the resignation of Intel's CEO, Lip-Bu Tan, due to concerns about his ties to Chinese companies. Senator Tom Cotton had expressed similar concerns in a letter.

Intel lost its market lead as it delayed the production of new chips and lost market share to competitors such as TSMC of Taiwan and Samsung of South Korea. The company abandoned the production of chips for smartphones, and CEOs were replaced.

The US Congress passed the CHIPS and Science Act, providing billions of dollars in subsidies for chip manufacturing in the US. Intel received the most subsidies, approximately $8 billion, but the effectiveness of these investments is questioned.

In the event of Tan's resignation, it is unclear who would take over as CEO. Some analysts suggest creating a new company, spinning off Intel's manufacturing division into an independent entity.