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Intel has appointed semiconductor industry veteran Lip-Bu Tan as its new CEO, effective March 18, 2025. The leadership change comes at a crucial time for the company, which has struggled with a sharp stock price decline and challenges in regaining its competitive edge in the chip market.
Tan, a seasoned executive with decades of experience, previously led Cadence Design Systems as CEO from 2009 to 2021, where he played a pivotal role in increasing revenue and stock value. His background also includes significant experience as a technology investor, particularly in semiconductor startups.
His appointment follows the departure of Pat Gelsinger, Intel’s former CEO, who faced difficulties in executing a successful turnaround strategy for the company.
In a letter addressed to Intel employees, Tan emphasized his commitment to restoring Intel’s reputation as a leader in chip design and manufacturing. “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,” he wrote.
Following the announcement, Intel’s stock surged by 12% in extended trading, reflecting positive sentiment from analysts who believe Tan’s leadership could stabilize the company. His appointment comes at a critical moment, as Intel faces major hurdles, including a 60% stock decline in 2024 and the financial burden of transitioning towards contract chip manufacturing.
Tan’s expertise in product design and semiconductor manufacturing will be essential as Intel seeks to reclaim market share and capitalize on AI-driven growth. The company has struggled to compete with rivals like Nvidia, which has seen tremendous success due to its dominance in AI chip production.
Before stepping into the CEO role, Tan was a member of Intel’s board from 2022 to 2024 and will rejoin the board as part of his new position. His leadership is expected to reinforce Intel’s commitment to maintaining its in-house chip design and manufacturing operations, despite ongoing speculation about potential restructuring.
Intel has faced significant challenges, including a 15% workforce reduction, impacting around 15,000 employees, as well as delays in opening its Ohio chip facility. The company also struggled with setbacks in bringing its Falcon Shores AI chips to market.
Amid these difficulties, Intel is undergoing a strategic transformation, aiming to become a major foundry for external clients. This shift is expected to introduce substantial changes to its business model as it adapts to the evolving semiconductor industry.
