Intel has a new CEO

Lip-Bu Tan, the new 65-year-old CEO of the semiconductor giant. Photo: Intel .

Intel, one of the world's largest chipmakers, has appointed Lip-Bu Tan, a former board member and semiconductor industry veteran, as its new CEO.

The appointment takes effect March 18, three months after Intel fired Pat Gelsinger, the former CEO and one of the company's most senior figures, for costly but failed projects that undermined investor confidence.

Reviving Intel in times of crisis

With extensive experience in the semiconductor industry and a long-time tech investor in promising startups, Lip-Bu Tan, a former Intel board member, was considered a candidate for CEO. The company approached him in December 2024 to gauge his interest in the position.

In a letter to all employees, Mr. Tan hopes that everyone will work together to restore Intel's position as the world's leading company and satisfy customers more than ever.

Intel is trying to weather one of its toughest times. The company's stock is down 60% in 2024.

Intel has found a new CEO, three months after former CEO Pat Gelsinger left the company. Photo: Tuan Anh.

Having missed out on capitalizing on its AI chip investments, the company is spending heavily to become a contract chipmaker for other companies, which has some investors worried about the pressure on its cash flow.

Intel's rivals are considering partnerships or taking control of parts of the company's operations to capitalize on its potential in the chip industry. Broadcom is reviewing Intel's chip design and marketing operations.

Meanwhile, TSMC is exploring the possibility of taking full or partial control of Intel’s chip factories. After being asked by the Trump administration to help Intel, TSMC has approached some of its biggest customers to form a joint venture and operate the company’s factories.

However, Intel’s stock has risen 12% since the appointment of the new CEO. Jack E. Gold, a semiconductor industry analyst, said Mr. Tan has a deep understanding of the areas where Intel needs support. “His appointment is good news,” he said.

Analyzing the new CEO's message, Gold and other analysts agree that while it may take years, Mr. Tan still wants to keep the company's integrity intact.

A trusted name in the semiconductor industry

Lip-Bu Tan, 65, is a Malaysian who grew up in Singapore and has degrees in physics, nuclear engineering and business administration.

He was CEO of chip design software provider Cadence Design Systems, during which time the company's revenue and stock soared.

Mr. Tan left Intel’s board last year after disagreeing with how the company was being turned around. He was frustrated with Intel’s large workforce, contract manufacturing practices and risk-averse, bureaucratic culture.

Intel is being acquired by rival chipmakers such as TSMC and Broadcom. Photo: Bloomberg.

Mr. Tan’s appointment comes as US President Donald Trump pushes for more domestic manufacturing and threatens tariffs on imported goods, which have roiled global markets in recent weeks. Mr. Trump has previously said that many Asian countries have taken away the US’s advantage in chip manufacturing.

In early March, Intel rival TSMC revealed plans to invest $100 billion in the U.S., including building five more chip manufacturing facilities. But Trump is trying to repeal a bipartisan 2022 law that would provide $52.7 billion in subsidies to the chip industry, including Intel.

Source: https://znews.vn/intel-co-ceo-moi-post1537814.html