Intel board appoints Lip-Bu Tan as new CEO
Intel has chosen Lip-Bu Tan, a seasoned chip industry executive, to head the struggling x86 chipmaker. Tan will replace Pat Gelsinger, who was abruptly removed from his position with no clear successor three months ago. He will take over from interim co-CEOs on March 18, hoping to lead Intel to its former heights.
Having served as CEO of Cadence Systems and as a venture capitalist with Walden Capital, Tan is a well-known figure in the semiconductor sector. Throughout his career, he has been on the board of various tech companies, including Samba Nova, Habana Labs, Nuvia, and Inphi. Tan’s experience extends to foundries, having been a board member at China’s Semiconductor Manufacturing International Co (SMIC) and part of Intel’s board until 2024.
According to news reports, Tan left Intel’s board due to clashes with Gelsinger regarding what he perceived as an excessively large workforce and a risk-averse work culture. Despite this, he expressed his honor in joining Intel as CEO, emphasizing the need for business transformation to better serve customers and generate shareholder value. Given his track record at Cadence Systems, where he saw a significant increase in the company’s stock price, many are optimistic about his appointment at Intel.
However, the path ahead is challenging for Tan. Intel faced severe losses in 2024, totaling $18.8 billion compared to a profit of $1.7 billion in 2023. Revenues also took a hit, declining by two percent annually to $53.1 billion. To address these issues, Tan emphasized the necessity of thorough assessments and strategic adjustments to propel the company forward. While details on the future of divisions like Intel Foundry remain undisclosed, it is evident that Intel under Tan’s leadership will undergo substantial transformations.
With Tan at the helm, the company will also see a restructuring of leadership roles, with Zinsner returning as CFO and Holthaus continuing in her position as CEO of Intel’s Products division. Despite the challenges ahead, Intel’s decision to appoint Tan has been well-received by investors, with the company’s stock surging by over 11% in after-hours trading following the announcement. As Intel embarks on a new chapter under Tan’s leadership, it remains to be seen how the x86 giant will navigate its way back to prosperity.
