How I Incony Intel fell into a 20 -year decrease

We are about to know this in a strange state that cannot change not only the profession of the CEO but also the jewel of companies for one time in the American Enterprise, which is a global industry, and what a former commercial secretary called “the most important part of the devices in 21^street century.”

The drama started on the morning of August 7, when President Trump Publish a short statement On the social truth: “Intel CEO is very conflicting and must be resigned, immediately. There is no other solution to this problem. Thank you for your interest in this problem!” The publication suddenly directed the attention of Senator Tom Couton (R.-Ark) sent to the Intel Chairman two days ago. He said Intel CEO lip-this Tan “Rose controls dozens of Chinese companies,” and a multinational company recently acknowledged that they are guilty of violating American export controls “under the duration of Mr. Tan”, among other accusations. By the end of the day, Tan sent a message to Intel employees, saying: “There was a lot of wrong information about my previous roles … I have always been working within the highest legal and ethical standards,” and I told Intel, “We are looking forward to our continuous communication with the administration.” The stock decreased by 5 % on a budget day for the market, and another blow to the share of Intel who were hoping – then – that things could reach down.

How I lost an edge

It was a story for one day if it were not about Intel, which was one day larger and most created in the world of computer chips.

The decline began about 20 years ago, when the company made several acquisitions, many of which were in the field of communications and wireless technology. In concept, this is logical. But obtaining companies is their own skill, and Professor David Yovi, Professor of Business College at Harvard University and he was on the Intel Board of Directors at that time, luck “100 % of these acquisitions failed. We spent $ 12 billion, and the return was zero or negative.”

Intel also tried to no avail to understand the chance of the mammoth cell phone. The company understood the opportunity and was providing very common BlackBerry phone chips. The chips are designed by ARM, a British company that designs chips but does not make them. Intel preferred the concept of the concept of creating phone chips in its architecture, known as X86. The company decided to stop making arm chips and create X86 chip for mobile phones – in the past, “a major strategic mistake,” says Yavi. He recalls, “The plan was that we have a competitive product within a year, and we ended up with the lack of a competitive product within a decade.” “It was not the case.

With the passage of years, the simple poor administration infiltrated. Intel continued to lose the final dates for new chips and the lost market share. The company surrendered to smart phone chips. Executive managers were replaced, but production problems lasted until 2021, and for the first time in Intel, their chips were from Gilan behind competitors. ”These competitors are TSMC Taiwan and South Korea. Samsung.

At Mode CRISIS, the Intel Pat Gelsiner, the 30 -year -old engineer, has returned INTEL before leaving 11 years to be a high -level executive in EMC and then CEO of the company Vmware. As the CEO of Intel, he announced an unusually ambitious and expensive plan to restore the company’s position as a global pioneer in chips technology. In February of this year, with a decrease in the share price, the board of directors launched it and brought it Tan.

Despite all of this, Intel is still decisively important because it is the only American company that has the technology and know-how to make leading chips in America-although it has not already done so eight years ago. At the highest level of political geography, Primacy in Chips is essential for power, and over the past eight years, the fastest and most valuable world chips have been made only in Taiwan and South Korea. For this reason, Congress approved Chips and Science Law With the majority of the two parties. It became a law in 2022 and the beginning of last year sent billions of dollars to chips, American and foreign makers, building new factories and other infrastructure of the chips in the United States, most of the subsidies were allocated, about $ 8 billion in loans, although the company did not receive most of the money, which is spent on the basis of the project link.

It seems as if the money came too late. Jovar Gupta, an analyst at Gartner Research Company. “They were getting all these benefits from the government. But I think they were unable to implement.” At that critical moment, the weak performance was expensive. “For a year and a half ago, there was still positive with Intel,” says Alvin Nguyen, an analyst at Forrester Research. “Now, not as much. The negative that struck them, it’s just a snowball.”

Now we assume that Tan was stepped as an executive president. “Who wants this job?” Stacy Rasgon, a long -time technical analyst in Bernstein. It is noted in a recent note that Tan “does not need” to run Intel (he is very rich and has many other things that occupy his time) … It is clear that he wants to do what is better for Intel … “But it is not clear whether the resignation will be good or bad for the company,” especially with Trump’s intersection on his back. “Rasgon, talk to luckHe asks, “How do you attract another person to that spot?”

Getting Tan was not easy. “The council took some time to find the new CEO when (the former president) left Gilgringer,” says Gupta. “It took a long time to find a candidate ready to take control and lead the company in a direction.”

However, Yavi and three other former managers argued in A. statement to luck For a new company, a new board, and a new executive, it revolves around Intel’s arm to an independent company to secure the dominance of America’s manufacturing.

Trump’s publication places itself in a decisive mystery of national security. Global domination requires a reliable source of leading chips. For this reason, Trade Minister Gina Raymondo said in 2024 that she was “the most important part of the devices …”. TSMC in Taiwan, the world’s largest producer for the leading chips, builds a large extent of the Burundian Armed Forces in Arizona, supported by the Chips Law, with a more plan. “You can make an argument that the greater the capacity in Arizona, the more we need Intel,” says Rasgon. But TSMC is not an American company, and Ngwin says, “The best technology of TSMC definitely does not come to the United States at this time.”

Who leaves Intel. “It is the only American company that can do this,” says Rasgon. “But INTEL still has to prove that it can be delivered. They have not proven it.” Trump has confused the company one day. But identifying and solving problems are very different, which is what INTEL monitors know about two decades.