Intel has appointed chip industry veteran and former board member Lip-Bu Tan as its new CEO, effective March 18.
The decision comes three months after the ousting of Pat Gelsinger, whose ambitious turnaround strategy struggled to gain traction and raised concerns among investors.
Tan, a seasoned technology investor, had been considered a strong candidate due to his extensive experience in the semiconductor sector. He was approached by Intel’s board in December, according to Reuters.
“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 stated in a letter to Intel employees on Wednesday.
Intel’s stock surged 12% in extended trading following the announcement, with analysts welcoming the move as a step toward stability. The company has faced a historic downturn, with its stock plummeting 60% in 2024, and is striving to capitalize on the AI chip boom that has propelled rivals like Nvidia.
As Intel invests heavily to become a contract chip manufacturer, concerns over cash flow have risen among investors. Reports suggest that competitors, including Broadcom, have evaluated Intel’s chip design business, while TSMC has explored potential control over its manufacturing plants.
Reuters recently reported that TSMC had approached Intel’s key manufacturing customers about a joint venture to operate its factories, following a request from the Trump administration for assistance in reviving the struggling chipmaker.
Tan, 65, previously served as CEO of Cadence Design Systems from 2009 to 2021, overseeing significant growth. He left Intel’s board last year over disagreements regarding the company’s contract manufacturing strategy and bureaucracy but will now rejoin as CEO.
