Intel’s new CEO, Lip-Bu Tan, has inherited more than just a towering legacy—he’s stepped into a perfect storm of challenges that threaten to redefine the iconic chipmaker’s future. Already battling declining market share and shrinking profit margins, Intel now faces intensified scrutiny after a very public call from the U.S. president for Tan’s resignation, causing the company’s stock to slide and adding further uncertainty to an already turbulent transition.

When Tan took over, his agenda was already full. Intel has been wrestling with three persistent problems: falling behind rivals in chip manufacturing technology, an ongoing struggle to catch up in the booming AI market, and internal resistance against fully embracing the foundry business—a shift critical for competing with giants like TSMC and Samsung. Over the past year, Intel’s stock has suffered a dramatic plunge, profits have been halved compared to historical norms, and the company’s restructuring and cost-cutting efforts have included significant layoffs and strategic pivots away from riskier investments.

Now, political pressures have thrust Tan into the spotlight. Concerns over his past business connections, especially with companies that have ties to China’s semiconductor industry, have prompted calls for greater transparency and even questions of national security. Meanwhile, Intel must reassure both Washington and investors that it remains vital to America’s tech ambitions. The company is pushing forward with a $100 billion investment plan for U.S. chip production and is banking on government support, but doubts linger about its ability to regain global leadership, especially as rivals dominate advanced nodes and AI applications.

Tan’s leadership will be tested like never before. He must steer Intel through fierce competition, political turbulence, and internal transformation—all while convincing skeptics that the company can still innovate and reclaim its status as a technological trailblazer. For Intel, the path forward is anything but certain, and every decision from here could determine whether it stages a comeback or continues to lose ground in the semiconductor race.