Intel has appointed Lip-Bu Tan as its new CEO, signaling a major leadership shift as the company attempts to recover from one of the most challenging periods in its history. Tan, a seasoned semiconductor industry veteran and former Intel board member, will officially take over on March 18. His appointment comes three months after the company ousted Pat Gelsinger, whose ambitious turnaround strategy failed to restore investor confidence.
Intel’s shares surged 12% in extended trading following the announcement, with analysts viewing Tan’s leadership as a stabilizing move. The company’s stock had plummeted by 60% in 2024 amid concerns over its financial health and competitive standing in the semiconductor industry.
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Once a dominant force in the chip industry, Intel has struggled to capitalize on the AI-driven chip boom that has benefited rivals like Nvidia. Additionally, the company’s push to become a contract chip manufacturer has raised concerns about cash flow and long-term viability.
Reports have surfaced about potential takeovers of Intel’s chip design and manufacturing businesses, with companies such as Broadcom and TSMC exploring opportunities to acquire parts of the struggling firm. Just this week, Reuters reported that TSMC had approached Intel’s major manufacturing clients to form a joint venture aimed at operating Intel’s chip plants.
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Despite these pressures, Tan has made it clear that he intends to keep Intel’s design and manufacturing businesses together. “Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry, and delight our customers like never before,” Tan wrote in a letter to Intel employees.
Who Is Lip-Bu Tan?
Tan, 65, is a respected figure in the semiconductor industry with extensive experience in chip design and venture capital. Born in Malaysia and raised in Singapore, he holds degrees in physics, nuclear engineering from MIT, and an MBA from the University of San Francisco.
He served as CEO of Cadence Design Systems from 2009 to 2021, significantly increasing the company’s revenue and market presence. He has also played key roles at Hewlett Packard Enterprise and SoftBank Group. Tan initially joined Intel’s board in 2022, taking on oversight of its manufacturing operations before stepping down in 2023 due to strategic disagreements with the company’s direction.
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