Intel’s new CEO: Can Lip-Bu Tan engineer a comeback?

Intel has appointed Lip-Bu Tan as its new chief executive officer, effective 18 March, as the company charts a fresh course and works to regain industry leadership.

Known as a seasoned semiconductor investor and executive, Tan replaces interim co-CEOs David Zinsner and Michelle Johnston Holthaus. He will also rejoin Intel’s board after having stepped down in August 2024.

Meanwhile, Zinsner will resume his role as executive VP and CFO and Johnston Holthaus will continue as CEO of Intel Products. Frank D. Yeary, who temporarily stepped in as executive chair, will return to his position as independent chair of the board.

A track record of transformation

Tan’s appointment marks a pivotal moment for Intel, which has struggled to keep pace in the semiconductor industry.

Yeary said of Tan’s credentials: “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.”

Tan has been instrumental in previous industry turnarounds. During his 12-year tenure as CEO of Cadence Design Systems between 2009 and 2021, he doubled revenues, expanded margins, and delivered a staggering 3,200% rise in stock price.

His leadership, defined by customer-centric innovation, transformed Cadence into a powerhouse in chip design software.

Outside of Cadence, Tan has been a key figure in venture capital, founding Walden Catalyst Ventures and serving as chairman of Walden International. His influence extends across major tech firms, including board roles at Credo Technology Group and Schneider Electric.

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Steering Intel’s turnaround

Tan takes the helm at a critical juncture. Once a dominant force in computing, Intel has lost ground to rivals like AMD and Nvidia, particularly in AI chips, where Nvidia’s GPUs have become the gold standard.

The numbers paint a stark picture:

• Last year, Intel reported US$18 billion in net losses.
• It announced 15,000 job cuts – 15% of its workforce.
• Its share of the semiconductor market has continued to erode, struggling against more agile competitors.

The company’s missteps – delays in process technology, a late entry into mobile, and underinvestment in AI – have left it playing catch-up.

Former CEO Pat Gelsinger was tasked with reviving Intel’s fortunes, but reports suggest he was ultimately pushed out after failing to deliver a swift turnaround.

Also Read: Intel CEO Pat Gelsinger forced out

Tan, however, sees opportunity amid the turbulence.

“I am honoured to join Intel as CEO. I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.”

Tan has already expressed commitment to stabilising Intel’s core business, reaffirming that he has no plans to split up the company’s design and manufacturing divisions – a move investors had been advocating.

Takeover rumours and industry speculation

The appointment comes as rumours swirl about a possible restructuring of Intel’s manufacturing arm.

A consortium of chip giants – including TSMC, Nvidia, AMD, and Broadcom – has purportedly shown interest in taking stakes in Intel’s fabrication plants.

Specifically, TSMC has reportedly floated the idea of a joint venture, where it would hold no more than a 50% stake in Intel’s manufacturing operations.

Tan, however, remains firm: “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.”

Intel’s future now hinges on Tan’s ability to execute a bold vision while navigating an industry undergoing massive change. His leadership style – defined by customer obsession, strategic reinvention, and long-term value creation – could be exactly what the company needs to reclaim its former glory.

With Intel embarking on its next chapter, all eyes will be on Tan to see whether he can engineer a comeback for one of the tech world’s most storied giants.