Intel has named Lip-Bu Tan as its new CEO, effective March 18, as the company looks to stabilize operations and regain investor trust. This decision comes three months after Pat Gelsinger stepped down. Following a challenging tenure that saw Intel’s stock plunge by 60% in 2024 despite his ambitious turnaround efforts.
Lip-Bu Tan, a veteran in the semiconductor industry and a former Intel board member. Now faces the tough task of leading the company through a highly competitive market. He will oversee Intel’s chip design, foundry expansion, and AI-driven innovation, aiming to restore the company’s former glory.
“We will work together to rebuild Intel into a world-class product company, strengthen our foundry business, and exceed customer expectations like never before” Tan wrote in a letter to Intel employees.
Following the announcement, Intel’s stock jumped 12% in extended trading, reflecting renewed optimism. The company is at a critical juncture, facing stiff competition in AI chip development from rivals like Nvidia and AMD. While also making significant investments to expand its chip manufacturing capabilities. Some investors have raised concerns about Intel’s financial health and long-term direction. This leads to speculation about whether the company might split its design and manufacturing divisions.
However, Tan’s leadership suggests Intel is likely to stay on course, keeping both businesses under one roof. He emphasized the company’s crucial role in the global technology ecosystem and expressed confidence in turning things around.
Related links you may find interesting
Recent reports suggested major industry players like Broadcom and TSMC considered acquiring parts of Intel, with TSMC even exploring a joint venture for some of Intel’s factories. However, with Tan now in charge, analysts believe he will focus on strengthening Intel’s foundry ambitions rather than breaking up the company.
His appointment also comes amid increasing pressure from the U.S. government to boost domestic semiconductor production. Former President Donald Trump’s administration urged TSMC to assist Intel while also threatening tariffs on Asian chip imports. At the same time, Trump opposed the $52.7 billion semiconductor subsidy bill, under which Intel had already secured grants.
Meanwhile, TSMC has announced a massive $100 billion investment to build five more chip plants in the U.S., further intensifying competition in the industry.
Intel turnaround will require patience from investors and strong leadership from its new named CEO Lip-Bu Tan. While his deep experience in the semiconductor industry and successful track record at Cadence bring hope, he faces a tough road ahead with fierce competition from Nvidia, AMD, and global chip foundries.
