Lip-Bu Tan Named Intel's New CEO, Aims to Restore World-Class Status
Intel has confirmed Lip-Bu Tan as its new CEO, replacing Pat Gelsinger who announced his departure after a near-four-year stint. Tan will take post on March 18, 2025.
Tan's appointment comes at a critical juncture for the company, which needs to make "calculated risks" to catch up with key rivals like AMD and Nvidia. The chipmaker's market cap lags behind these competitors, standing at $89.2 billion compared to AMD's $163.6 billion and Nvidia's $2.83 trillion.
Tan promises an "engineering-focused" Intel and remains committed to innovation. He believes the company has a unique opportunity to remake itself at one of its most pivotal moments in history, citing its ability to make calculated risks to disrupt and leapfrog areas of the business that are behind the competition.
About Lip-Bu Tan
Tan's background includes a 12-year stint as Cadence Design Systems CEO between 2009 and 2021, where he delivered a stock price increase of more than 3,200%. He has previously served on Intel's board but gave up his seat due to strategic disagreements.
Analysts React Positively
Analysts are clearly happy with the new leadership, with shares shooting up 12% following the announcement to $23.21. Tan's appointment is seen as a move towards restoring Intel's world-class status by focusing on both product development and foundry services.
Interim CEOs Revert to Original Positions
With the appointment of a new CEO, interim CEOs Michelle Johnston Holthaus and Dave Zinsner will step back into their original positions as CEO of Intel Products and company CFO respectively. Tan's commitment to innovation and his engineering-focused approach are expected to boost morale among employees.
The Road Ahead
Tan's task ahead is challenging, but he remains undeterred by the obstacles that lie in store for him. He believes Intel has what it takes to win and is committed to making calculated risks to disrupt and leapfrog areas of the business that are behind the competition.
Conclusion
Tan's appointment as Intel's new CEO brings a fresh perspective to the company, with a focus on innovation and product development. As he steps into office on March 18, Tan will be expected to deliver results and restore Intel's world-class status.