Intel’s latest CEO, Lip-Bu Tan, stepped into the role facing a host of challenges, and this week, political turmoil added another serious concern. Before this new development, Tan was already tackling three critical issues: lagging innovation, mounting financial pressure, and fierce global competition—all while overseeing an urgent restructuring to keep the iconic chipmaker relevant.

The core of Intel’s troubles comes from losing its early leadership in mobile chips, falling behind in artificial intelligence, and internal reluctance to embrace a modern foundry business model. As rivals such as Nvidia, AMD, and especially TSMC pull further ahead, Intel’s margins and market share have suffered. The company’s value plummeted in 2024, and while there have been some signs of stabilization, profits remain well below historic averages.

Tan responded by making deep cuts, shifting away from expensive, aggressive investments, and slowing manufacturing expansion unless major customers commit. This cautious, customer-centric approach marks a significant turn from his predecessor’s bold strategy, yet the underlying question persists: Can Intel catch up in the rapidly evolving semiconductor landscape?

Just as Tan was navigating these difficulties, political scrutiny dramatically escalated the pressure. President Trump publicly called for Tan’s resignation, citing concerns about the CEO’s past business ties to companies linked to China’s military. These accusations, amplified by leading lawmakers, rattled investors and pushed Intel’s stock down further.

Despite this storm, Intel maintains that it is committed to U.S. national security and continues to pour billions into American manufacturing and research. The company’s future now hangs on its ability to rebuild trust—not just with customers and shareholders, but also with the U.S. government. With the semiconductor race at a critical juncture, Intel’s response in the coming months will likely determine whether it can reclaim its place at the forefront of global technology.