Intel Names Lip-Bu Tan as CEO to Drive Turnaround Strategy
Photo Credit: Intel Newsroom
Intel has appointed Lip-Bu Tan as its new CEO, marking a significant leadership change as the company seeks to recover from a period of declining performance. A seasoned semiconductor industry veteran, Tan will officially take charge on March 18, 2025. His appointment comes three months after Intel ousted former CEO Pat Gelsinger, whose turnaround plans failed to regain investor confidence.
Following the announcement, Intel’s stock surged by 12%, signaling positive market sentiment. The company’s shares had previously plummeted by 60% in 2024, as concerns grew over its financial health and competitive position against rivals like Nvidia and AMD.
Intel’s interim executive chairman Frank D. Yeary praised Tan’s deep expertise in semiconductor technology and strategic leadership. He described Tan as a customer-focused innovator with a strong track record of driving growth. On his appointment, Tan expressed confidence in Intel’s potential, emphasizing his commitment to strengthening Intel’s chip design and manufacturing operations.
Challenges Facing Intel
Despite being a pioneer in semiconductor technology, Intel has struggled to capitalize on the AI-driven chip boom, which has boosted companies like Nvidia. Additionally, Intel’s push into contract chip manufacturing has raised concerns about its long-term financial stability.
Industry reports suggest that Broadcom and TSMC have explored potential takeovers of Intel’s chip design and manufacturing divisions. Recently, Reuters reported that TSMC had approached Intel’s clients to form a joint venture aimed at managing Intel’s chip plants. However, Tan has dismissed speculation of breaking up Intel’s business, stating his commitment to keeping design and manufacturing under one roof.
Who Is Lip-Bu Tan?
Lip-Bu Tan, 65, is a highly regarded semiconductor expert with decades of experience in chip design and venture capital. Born in Malaysia and raised in Singapore, he holds degrees in physics and nuclear engineering from MIT and an MBA from the University of San Francisco.
From 2009 to 2021, he served as CEO of Cadence Design Systems, significantly increasing its revenue and global footprint. He has also held key roles at Hewlett Packard Enterprise and SoftBank Group. Tan initially joined Intel’s board in 2022, overseeing manufacturing operations, before stepping down in 2023 due to strategic differences with the company’s direction.
Source: Intel Newsroom & Financial Express
