Intel (Nasdaq: INTC) has named Lip-Bu Tan as its new Chief Executive Officer, effective 18 March, marking a leadership shift for the semiconductor giant as it seeks to regain market momentum. The announcement led to an 11% jump in Intel’s stock price in extended trading.
Tan, a veteran in the semiconductor industry, was previously CEO of Cadence Design Systems, a key provider of software used by major chip designers, including Intel. He also served on Intel’s board until August 2024, when he stepped down citing other commitments.
He succeeds interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus, who had led the company since December following the ousting of Pat Gelsinger. Zinsner will continue as Intel’s Executive Vice President and Chief Financial Officer, while Holthaus remains CEO of Intel Products.
A crucial appointment in a turbulent period
Tan’s appointment comes as Intel navigates a challenging business environment marked by increased competition, supply chain pressures, and investor concerns over cost-cutting and restructuring. The company has faced calls to spin off parts of its business while working to restore its position as a leader in semiconductor manufacturing.
Frank D. Yeary, Intel’s interim executive chair, praised Tan’s leadership qualities, calling him an “exceptional leader” with deep industry knowledge and strong relationships across the semiconductor ecosystem.
“Lip-Bu’s track record of delivering shareholder value and driving innovation is exactly what Intel needs in its next CEO,” Yeary said. “His relentless focus on customers and high-performance cultures will help accelerate our turnaround and capitalise on significant growth opportunities.”
Tan expressed his enthusiasm about leading Intel through its next phase of transformation.
“I am honored to join Intel as CEO,” he said. “This is an iconic company with vast potential. I see significant opportunities to remake our business in ways that serve our customers better and create value for shareholders.”
Industry veteran with a proven track record
Tan brings over two decades of experience in the semiconductor and software industries. As CEO of Cadence from 2009 to 2021, he led the company through a transformation, doubling its revenue and significantly improving operating margins. Under his leadership, Cadence’s stock price surged more than 3,200%.
He also has extensive experience in venture capital, serving as the founding managing partner of Walden Catalyst Ventures and chairman of Walden International. Tan currently sits on the boards of Credo Technology Group and Schneider Electric.
Holding degrees in physics, nuclear engineering, and business, Tan received the Semiconductor Industry Association’s Robert N. Noyce Award in 2022, the industry’s highest honour.
Intel’s leadership shake-up in recent years
Tan will be Intel’s fourth permanent CEO in seven years. The company has undergone frequent leadership changes since Brian Krzanich resigned in 2018 over an inappropriate relationship with an employee. His successor, Bob Swan, left in 2021 amid mounting competitive pressures, paving the way for Gelsinger’s return. However, Gelsinger’s tenure was cut short in December as Intel struggled with declining sales and market share losses to rivals like AMD and Nvidia.
Intel’s recent earnings report highlighted ongoing challenges, with the company citing economic conditions, inventory digestion by customers, and concerns over potential tariffs as key uncertainties.
