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Tan’s efforts to secure the company’s future were met with resistance. He aimed to improve Intel’s balance sheet, which includes $50 billion in debt and $43 billion in current assets, by initiating a multibillion-dollar capital raise. However, his plans were delayed until 2026.
During an earnings call, Tan acknowledged that the company had overinvested in capacity over recent years, leading to excessive factory fragmentation. He stated that he would consider customer feedback and volume commitments before allocating funds for the next generation of chip manufacturing processes.
Intel’s latest earnings report was disappointing, causing its stock price to drop by more than 8%. Shares have lost 2.2% year-to-date since Tan became CEO, and are down 12.6% since the earnings report due to investors’ skepticism about short-term benefits from the company’s turnaround plans.
This controversy underscores the tension between Tan’s strategic vision for U.S. manufacturing security and Yeary’s preference for cost-cutting measures through a spinoff.
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What was Tan's primary goal when he became CEO of Intel?
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