Intel appoints industry veteran as new CEO to right the ship of the chipmaker

Intel appointed a new CEO late last night. Lip-Bu Tan, a long-time Intel and semiconductor veteran, will begin his new role on March 18, 2025.

Tan served on Intel's board of directors from 2022 until 2024, but he reportedly stepped back from that role due to disagreements about the direction of the company.

Previously, Tan was CEO of Cadence Design Systems from 2009 until 2021. During his tenure there, company revenue more than doubled and Cadence Design Systems revenue spiked.

In addition to serving as CEO, Tan will become a member of the Intel board of directors.

Tan's appointment comes three months after the sudden departure of former CEO Pat Gelsinger.

Tan shared the following on his new role:

"I am honored 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. 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."

Tan's appointment goes back to Intel's roots of having executives with engineering experience. Tan has degrees in physics, nuclear engineering, and business administration.

"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," said Intel Chairman Frank D. Yeary.

Yeary was Intel's interim executive chair while the company was without a CEO. He will now return to being an independent chair of the company's board.

David Zinser and Michelle Johnston Holthaus, who were acting co-CEOs of Intel during the period between Gelsinger's departure and Tan's appointment, will continue with the chipmaker.

Zinser is Intel's executive vice president and CFO and Holthaus is CEO of Intel Products.

Restoring Intel

Intel struggled mightily under the leadership of Gelsinger. The former CEO was brought in to right the ship at Intel, but things did not go to plan.

Intel stock dropped 60% in 2024 and the chipmaker reported a net loss of $1.6 billion in a single quarter.

Gelsinger's bold strategy shift for Intel, including the company manufacturing chips for competitors and other chipmakers, has not panned out.

Previous reports by Reuters indicate that Broadcom and TSMC are separately evaluating Intel's manufacturing business. Either of those tech giants could explore a partnership or another form of collaboration with Intel's manufacturing business.

Now, new CEO Tan has the task of correcting the path of Intel.

"Together, we will work hard to restore Intel's position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before," said Tan in a letter sent to Intel employees on Wednesday, as reported by Reuters.

Intel stock rose 12% on the day Tan was announced as CEO.