Athira Sethu
Kochi, 13 March 2025
Intel Corporation has named Lip-Bu Tan, a veteran chip industry executive and ex-board member, its new CEO. The Wednesday announcement comes as the company tries to bounce back from a rough patch in its history. Tan will assume his new position on March 18, 2024. This comes after the removal of previous CEO Pat Gelsinger, whose ambitious ambitions to return the company to glory had not managed to stem the tide of investor skepticism.
Tan, age 65, is a highly respected veteran of the semiconductor sector. With three decades of chip-making and design expertise, he was viewed as a top contender to head Intel. Prior to coming onto the board at the company, Tan was the CEO of Cadence Design Systems, a firm that offers software used for designing chips. Under his stewardship, Cadence experienced dramatic revenue and stock price growth. Tan also has experience as a technology investor, having backed some of the most promising startups in the industry.
In a note to Intel employees, Tan reinforced his intention to return Intel to a leading global technology company. Tan pointed to the company’s potential to become a world-class foundry as well as continue evolving its product portfolio. Tan’s message was received well, with Intel shares soaring 12% in after-hours trading.
Intel is also in the midst of a massive overhaul, attempting to keep up with surging demand for sophisticated AI chips, a market that Nvidia and other rivals have capitalized upon. The corporation is also investing heavily to become a contract chip manufacturer for other companies. Investors have warned, however, of the pressure this would put on Intel’s cash flow.
Tan’s appointment indicates that Intel is likely to continue with its policy of having both chip design and manufacturing facilities. Although analysts are hopeful about Tan’s leadership, they warn that any turnaround will be time-consuming and require patience from investors.
