Intel CEO rejects calls to reconsider Israel activity

The proposal was put forward by shareholders out of geopolitical considerations.

At the first shareholders meeting since becoming Intel CEO, Lip-Bu Tan and the company's management rejected a proposal by shareholders to re-examine its activity in Israel. The proposal was put forward out of geopolitical considerations.

The proposal, revealed in a report by "Reuters", was one of three that were rejected, and could have forced the company to hold a formal internal discussion about its continued investment and presence in Israel, where some of Intel's key development and manufacturing facilities outside the US operate, including the Kiryat Gat plant that employs thousands of workers.

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The rejection of the proposal is seen as a clear signal that Intel does not intend to reopen the issue of operations in Israel at this stage, despite pressure from some investors.

At the same meeting, shareholders approved the renewal of the employee stock allocation program, with the aim of hiring and retaining employees sought by rival companies, as well as the compensation package for the new CEO, which includes a stock bonus of $42 million, subject to meeting business goals.

Intel's management made it clear that they do not plan changing the strategic action plan, which focuses on restoring the company's position in the chip market, leading the field of AI and improving management efficiency.

Tan, who took over after Pat Gelsinger was dismissed, is leading a major reorganization at the company, in order to deal with slowing growth, declining revenue and increasing competition from Nvidia, AMD and TSMC.

Published by Globes, Israel business news - en.globes.co.il - on May 14, 2025.

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