Intel’s board has tapped chip industry veteran Lip-Bu Tan as the next CEO, effective March 18. Tan takes over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who stepped in after Pat Gelsinger was ousted last December. Zinsner will resume his role as CFO, while Holthaus continues to lead Intel’s product division.
Frank Yeary, the interim executive chair, praised Tan as an exceptional leader with over 20 years of experience in semiconductors and software. Tan previously led Cadence Design Systems from 2009 to 2021, during which he successfully doubled revenue and boosted stock prices significantly.
Tan expressed enthusiasm about joining Intel and acknowledged the company’s strong position in computing and manufacturing. He also pointed out the challenges ahead, especially considering his own frustrations with Intel’s previous management approach.
Analyst Jack Gold emphasized that Tan’s experience in product design and manufacturing positions him well to guide Intel Foundry. Gold believes Tan’s appointment reflects the board’s intent to keep design and manufacturing together, rather than splitting them apart.
However, some analysts, like Alvin Nguyen, question whether Tan’s long tenure at Cadence gives him the diverse experience needed to tackle Intel’s challenges. Nguyen pointed out that Intel’s struggles in major tech trends, like smartphones and AI, complicate matters.
Gelsinger’s efforts for a long-term turnaround fell flat, particularly as the company’s stock plummeted over 50% during his last year. Intel faces a steep climb, and many eyes will be on Tan to see if he can navigate the company back to stability.