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Intel Corporation has appointed industry veteran Lip-Bu Tan as its new CEO, effective March 18, in a strategic move to restore the struggling chipmaker's position in an increasingly competitive market. The announcement sent Intel shares surging 12% in extended trading Wednesday, offering investors hope amid the company's prolonged difficulties.
"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 his letter to Intel employees following the announcement.
Tan, 65, brings extensive industry experience to the position. The Malaysian-born executive previously served as CEO of Cadence Design Systems from 2009 to 2021, where he oversaw significant revenue and stock growth during his tenure. His appointment comes three months after Intel ousted former CEO Pat Gelsinger, whose ambitious turnaround plan was faltering.
"Intel is a company I have long admired," Tan emphasized in his company letter, expressing confidence in the chipmaker's potential recovery despite recent challenges. His appointment signals Intel's intention to maintain its integrated business model rather than splitting its chip design and manufacturing operations.
Analysts view Tan's appointment positively. "This is welcome news," said Jack E. Gold, analyst and president of J. Gold Associates. He noted Tan has an "intrinsic understanding of the semiconductor industry, both from a product design aspect as well as the needs of enabling chip manufacturing."
Intel faces a critical transition period amid industry-wide shifts. The company has struggled to capitalize on the AI chip boom that has benefited rivals like Nvidia, whose market valuation now exceeds Intel's by more than thirty times. Intel's stock had declined 60% in 2024 before Wednesday's announcement.
Tan previously served on Intel's board but departed last year over strategic disagreements. Reuters reported he "grew frustrated by the company's large workforce, its approach to contract manufacturing and Intel's risk-averse and bureaucratic culture."
Frank Yeary, Intel's board chair, cited Tan's "proven track record of creating shareholder value" as crucial for accelerating Intel's turnaround. Interim co-CEOs David Zinsner and MJ Holthaus will return to their previous roles, with Zinsner resuming his position as CFO.
The appointment comes amid broader industry dynamics, including Trump administration requests for Taiwan Semiconductor Manufacturing Company (TSMC) to assist in revitalizing Intel. Recent reports indicated TSMC approached potential Intel manufacturing customers about forming joint ventures.
Tan's leadership will face immediate challenges, including Intel's weakened market position, declining PC chip sales, and intense competition in the AI processor space. Industry analysts caution that any transformation will require years of strategic execution and investor patience. AS NEW CEO IN TURNAROUND BID
Intel Corporation has appointed industry veteran Lip-Bu Tan as its new CEO, effective March 18, in a strategic move to restore the struggling chipmaker's position in an increasingly competitive market. The announcement sent Intel shares surging 12% in extended trading Wednesday, offering investors hope amid the company's prolonged difficulties.
"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 his letter to Intel employees following the announcement.
Tan, 65, brings extensive industry experience to the position. The Malaysian-born executive previously served as CEO of Cadence Design Systems from 2009 to 2021, where he oversaw significant revenue and stock growth during his tenure. His appointment comes three months after Intel ousted former CEO Pat Gelsinger, whose ambitious turnaround plan was faltering.
"Intel is a company I have long admired," Tan emphasized in his company letter, expressing confidence in the chipmaker's potential recovery despite recent challenges. His appointment signals Intel's intention to maintain its integrated business model rather than splitting its chip design and manufacturing operations.
Analysts view Tan's appointment positively. "This is welcome news," said Jack E. Gold, analyst and president of J. Gold Associates. He noted Tan has an "intrinsic understanding of the semiconductor industry, both from a product design aspect as well as the needs of enabling chip manufacturing."
Intel faces a critical transition period amid industry-wide shifts. The company has struggled to capitalize on the AI chip boom that has benefited rivals like Nvidia, whose market valuation now exceeds Intel's by more than thirty times. Intel's stock had declined 60% in 2024 before Wednesday's announcement.
Tan previously served on Intel's board but departed last year over strategic disagreements. Reuters reported he "grew frustrated by the company's large workforce, its approach to contract manufacturing and Intel's risk-averse and bureaucratic culture."
Frank Yeary, Intel's board chair, cited Tan's "proven track record of creating shareholder value" as crucial for accelerating Intel's turnaround. Interim co-CEOs David Zinsner and MJ Holthaus will return to their previous roles, with Zinsner resuming his position as CFO.
The appointment comes amid broader industry dynamics, including Trump administration requests for Taiwan Semiconductor Manufacturing Company (TSMC) to assist in revitalizing Intel. Recent reports indicated TSMC approached potential Intel manufacturing customers about forming joint ventures.
Tan's leadership will face immediate challenges, including Intel's weakened market position, declining PC chip sales, and intense competition in the AI processor space. Industry analysts caution that any transformation will require years of strategic execution and investor patience.
