Lip-Bu Tan named Intel’s new CEO amid challenges

Intel has named veteran semiconductor executive Lip-Bu Tan as its new CEO, effective March 18, 2025. The announcement comes after a turbulent period for the company, which saw a sharp decline in its stock price and struggled to regain its competitive edge in the chip industry.

Tan, who previously served as CEO of Cadence Design Systems from 2009 to 2021, is credited with significantly boosting the company’s revenue and stock price during his tenure. He also has extensive experience as a technology investor in semiconductor startups.

His appointment follows the ousting of Intel’s former CEO, Pat Gelsinger, whose ambitious turnaround plans were unable to reverse the company’s declining fortunes.

In a letter to Intel employees, Tan expressed his commitment to restoring Intel’s position as a world-class products company and a leading foundry for chip manufacturing. “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,” Tan wrote.

Intel’s shares surged 12% in extended trading following the announcement, with analysts expressing optimism that Tan’s leadership will bring stability to the company. The appointment comes at a critical time as Intel faces significant challenges, including a 60% decline in its stock in 2024 and heavy investments required to shift towards contract chip manufacturing.

Tan’s deep understanding of both product design and manufacturing operations will be crucial as Intel seeks to regain market share and capitalize on the growing demand for AI chips. The company has faced difficulties in competing with rivals like Nvidia, which has seen significant growth due to its AI chip offerings.

In addition to his extensive experience at Cadence, Tan served on Intel’s board from 2022 to 2024, and he will rejoin the board as part of his appointment. His appointment signals a determination to keep Intel’s chip-design and manufacturing operations intact, despite prior speculation about potential splits.

The company’s recent struggles also include a 15% workforce reduction, affecting approximately 15,000 employees, and delays in opening its Ohio chip factory. Intel also faced setbacks in bringing its Falcon Shores AI chips to market.

Intel’s ongoing transformation includes efforts to become a leading foundry for external clients, which could involve significant changes to its business model.