Intel Names Lip-Bu Tan As New CEO

Chip giant Intel Corporation has appointed Lip-Bu Tan as its new CEO, effective March 18, as the company seeks to stabilise operations and regain investor confidence. The move comes three months after the departure of Pat Gelsinger, whose ambitious turnaround plan failed to prevent Intel's stock from plummeting 60 per cent in 2024.

His appointment comes amid increasing pressure from the US government to expand domestic semiconductor manufacturing. 

President Donald Trump's administration has been encouraging TSMC to assist in reviving Intel, while threatening tariffs on chip imports from Asia. Also, Trump has opposed the $52.7 billion semiconductor subsidy bill, under which Intel has already received grants.

Lip-Bu, a semiconductor industry veteran and former Intel board member, is said to steer the company through one of its most challenging periods, balancing chip design, foundry ambitions, and AI-driven innovation in an increasingly competitive market.

Zinsner will remain executive vice president and chief financial officer, and Johnston Holthaus will remain CEO of Intel Products. Frank D. Yeary, who took on the role of interim executive chair of the board during the search for a new CEO, will revert to being the independent chair of the board upon Tan becoming CEO.

“Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO,” Yeary said in a statement. 

“Throughout his long and distinguished career, he has earned a reputation as an innovator who puts customers at the heart of everything he does, delivers differentiated solutions to win in the market and builds high-performance cultures to achieve success.

The announcement sparked a 12 per cent surge in Intel's stock in extended trading. Intel finds itself at a critical juncture, caught between fierce competition in AI-driven chip development and its ambitious push to become a leading contract manufacturer.

The chip giant has struggled to gain traction in the booming AI chip market, where competitors Nvidia and AMD have surged ahead, while simultaneously managing heavy investments in foundry expansion.

However, Lip-Bu's appointment suggests Intel intends to maintain its current integrated structure, keeping foundry and product businesses united. 

"Intel plays an essential role in the technology ecosystem, both in the US and around the world. And, together, I'm confident we can turn our business around," Lip-Bu stated in his employee letter.

Who is Lip-Bu Tan?

The 65-year-old Malaysian-born executive, raised in Singapore, brings substantial industry experience to the role. He holds a physics degree from Nanyang Technological University, a master's in Nuclear Engineering from MIT, and an MBA from the University of San Francisco.

Tan previously served as CEO of Cadence Design Systems from 2009 to 2021, where he doubled revenue and revamped the company's chip-design software solutions. He is also founder and Chairman of Walden International, a San Francisco-based venture capital firm investing in technology startups, and has served on the boards of Hewlett Packard Enterprise and SoftBank Group.

While Tan joined Intel's board in 2022, he stepped down in 2023 over disagreements concerning the company's turnaround strategy. Recent reports had indicated major players including Broadcom and TSMC were exploring acquisition opportunities for parts of Intel's business, with TSMC reportedly discussing a joint venture to operate some of Intel's chip factories.