Lip-Bu Tan has been chosen to be Intel’s new CEO, starting March 18, 2025. The news comes at a time when the company is still trying to get back on top of the semiconductor business after years of setbacks. After the news came out, Intel’s stock went up 12% during late trade.
Who is Lip-Bu Tan?
In the chip business, Lip-Bu Tan is a well-known name. He used to be the CEO of Cadence Design Systems, a business that makes important software for Intel and other big chipmakers. He has also served on the boards of Hewlett Packard Enterprise and SoftBank Group.
Intel appoints Lip-Bu Tan as Chief Executive Officer. https://t.co/Iwe7twz3SL
— Intel News (@intelnews) March 12, 2025
Tan has a physics degree from Nanyang Technological University, a master’s degree in nuclear engineering from MIT, and an MBA from the University of San Francisco. He was born in Malaysia.
He was on the Intel board until 2024, but he quit because of differences in strategy. As CEO, he is now supposed to turn Intel around.
Why Was Tan Chosen?
Intel has had problems in the AI business, with sales going down and competition going up. Pat Gelsinger, the company’s former CEO, was fired in December 2024 because he failed to carry out a plan to turn things around.
David Zinsner and MJ Holthaus, who were named temporary co-CEOs of Intel, have been running the business since then. But investors wanted Intel to have a leader with a lot of knowledge to help it through its problems.
Intel’s interim CEO, Frank Yeary, praised Tan’s leadership and said he has a “proven track record of creating shareholder value.”
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Challenges for Tan
Tan takes over at a very important time for Intel. Nvidia, a big name in AI chips, has been running the market with its GPUs, making it hard for the company to compete. At the same time, Intel’s competitor Qualcomm has shown interest in buying some of Intel’s business.
In the past few years, Intel has also had problems with delays in chip production, which has cost the company a lot of money. In November 2024, the company was even kicked off the Dow Jones Industrial Average and Nvidia took its place.
Intel’s market value is $89.5 billion right now, which is less than 30% of Nvidia’s value.
What’s Next for Intel?
Tan has a big plan for Intel’s comeback. “Where we’re ahead, we need to put in even more effort.” “When we’re behind, we need to take calculated risks to catch up and get ahead of the competition,” he said in a statement.
Tan’s leadership will be very important as Intel tries to win back the trust of investors and fight in the AI chip market. He has a lot of experience in the field and thinks strategically.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors are advised to consult financial experts before making investment decisions.)
