Intel has appointed Lip-Bu Tan, a former board member and industry veteran, as its new CEO, as the struggling chipmaker aims for a turnaround under his leadership.
The big picture: Tan, 65, is not new to the semiconductor industry, having previously served as the CEO of Cadence Design Systems, a company specializing in processor design software.
- Prior to taking on the CEO role at Intel, Tan had been a member of the company’s board of directors before stepping down in August. Following his appointment as CEO, he will also rejoin Intel’s board.
Driving the news: The appointment comes after the abrupt departure of Intel’s previous CEO, Pat Gelsinger, amid a significant downturn for the company, including layoffs and questions about its future as an independent entity.
- Gelsinger’s tenure saw Intel’s stock price plummet by 60%, resulting in a loss of $160 billion in shareholder wealth, along with significant workforce reductions and suspended dividends.
- Furthermore, Intel had to delay the opening of two new chip factories in Ohio in a bid to ensure financial responsibility, utilizing funds from the CHIPS Incentives Program initiated during the Biden administration.
- Intel has faced challenges in keeping pace with technological shifts, particularly in mobile computing and artificial intelligence, which have been dominated by other chipmakers like Nvidia.
