Chipmaker giant Intel appointed tech industry veteran Lip-Bu Tan as its new chief executive on Wednesday, who would be assuming his role from March 18, 2025.
The move pushed the company shares soaring more than 10 per cent in after market trade.
Bu Tan’s appointment comes at a crucial time when the tech firm is struggling to reclaim its dominance in the industry. Tan is also scheduled to join the board of directors from August. As Intel’s new chief, Tan inherited a company once at the top in the computer component manufacturing sector, however as rivals like Nvidia, Taiwan’s TSMC and South Korea’s Samsung have emerged as new leaders, the company is grappling with massive losses.
Intel’s interim CEO Frank D Yeary said, “We are delighted to have Lip-Bu as our CEO as we work to accelerate our turnaround and capitalize on the significant growth opportunities ahead.”
In a statement released by the company Tan said, “Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap.”
“I am eager to join the company and build upon the work the entire Intel team has been doing to position our business for the future,” he added.
The company is hoping to regain its position as the semiconductor leader with the decision though Tan told the Intel team that “won’t be easy” to overcome challenges faced by the company.
Who is Lip Bu Tan?
Lip-Bu Tan is an experienced CEO with a track record in the computer software sector and has played a key role in shaping the semiconductor landscape.
Born in Malaysia, Tan is a well-renowned figure in the semiconductor industry. He made his mark as the CEO of Cadence Design Systems, a leading chip design software company, from 2009 to 2021. Intel reported that under his leadership, Cadence increased its revenue to more than double.
Tan has a bachelor’s degree in science, from the Nanyang Technological University Singapore. He also studied masters of science at the Massachusetts Institute of Technology, after which he went on to pursue an MBA at the University of San Francisco.
He was also awarded an honorary doctor’s degree in May 2022, by the University of San Francisco.
In 2022, he received the Robert N Noyce Award, the Semiconductor Industry Association’s highest honor.
Tan is looking forward “to remake our company at one of the most pivotal moments in its history,” with his new role.
Yeary said, “I have worked closely with Lip-Bu in the past and have seen firsthand how his relentless attention to customers drives innovation and success.”
Why is Intel struggling?
Intel’s struggle can be mainly attributed to its failure to capitalise on the AI boom while its competitors like Nvidia have earned its position in the newly emerging AI realm. The struggles can be seen in its financial performance, reporting a staggering $18.8 billion net loss in 2024.
Lip-Bu Tan’s predecessor, Pat Gelsinger, was forced out as Intel’s CEO in December last year after the board lost confidence in his turnaround strategy. His sudden departure followed a series of drastic measures, including a plan to cut over 15,000 jobs and the decision to halt or delay construction on multiple chipmaking facilities as part of a major cost-cutting effort.
Last year, the Biden administration awarded Intel $7.9 billion as part of an effort to boost semiconductor production in the US, but in February, the company slowed down the construction of two new chip plants in Ohio, citing a cautious approach to the $28 billion project.
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