Intel has named veteran semiconductor government Lip-Bu Tan as its new CEO, efficient March 18, 2025. The announcement comes after a turbulent interval for the corporate, which noticed a pointy decline in its inventory value and struggled to regain its aggressive edge within the chip trade.
Tan, who beforehand served as CEO of Cadence Design Techniques from 2009 to 2021, is credited with considerably boosting the corporate’s income and inventory value throughout his tenure. He additionally has intensive expertise as a know-how investor in semiconductor startups.
His appointment follows the ousting of Intel’s former CEO, Pat Gelsinger, whose formidable turnaround plans had been unable to reverse the corporate’s declining fortunes.
In a letter to Intel staff, Tan expressed his dedication to restoring Intel’s place as a world-class merchandise firm and a number one foundry for chip manufacturing. “Collectively, we are going to work onerous to revive Intel’s place as a world-class merchandise firm, set up ourselves as a world-class foundry, and delight our prospects like by no means earlier than,” Tan wrote.
Intel’s shares surged 12% in prolonged buying and selling following the announcement, with analysts expressing optimism that Tan’s management will carry stability to the corporate. The appointment comes at a essential time as Intel faces vital challenges, together with a 60% decline in its inventory in 2024 and heavy investments required to shift in the direction of contract chip manufacturing.
Tan’s deep understanding of each product design and manufacturing operations might be essential as Intel seeks to regain market share and capitalize on the rising demand for AI chips. The corporate has confronted difficulties in competing with rivals like Nvidia, which has seen vital progress attributable to its AI chip choices.
Along with his intensive expertise at Cadence, Tan served on Intel’s board from 2022 to 2024, and he’ll rejoin the board as a part of his appointment. His appointment alerts a dedication to maintain Intel’s chip-design and manufacturing operations intact, regardless of prior hypothesis about potential splits.
The corporate’s current struggles additionally embody a 15% workforce discount, affecting roughly 15,000 staff, and delays in opening its Ohio chip manufacturing facility. Intel additionally confronted setbacks in bringing its Falcon Shores AI chips to market.
Intel’s ongoing transformation consists of efforts to change into a number one foundry for exterior shoppers, which may contain vital adjustments to its enterprise mannequin.