Intel names Lip-Bu Tan as CEO, betting on stability amid tumultuous turnaround: Know all about him

Intel Corporation has appointed Lip-Bu Tan as its new CEO, effective March 18, as the struggling chip giant seeks to stabilise operations and regain investor confidence. The move comes three months after the departure of Pat Gelsinger, whose ambitious turnaround plan failed to prevent Intel’s stock from plummeting 60% in 2024.

Tan, a semiconductor industry veteran and former Intel board member, is expected to steer the company through one of its most challenging periods, balancing chip design, foundry ambitions, and AI-driven innovation in an increasingly competitive market. “Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry, and delight our customers like never before,” Tan wrote in a letter to Intel employees on Wednesday.

The announcement sparked a 12% surge in Intel’s stock in extended trading. Intel is at a pivotal moment, caught between fierce competition in AI-driven chip development and its ambitious push to become a leading contract manufacturer.

The company has struggled to capitalise on the booming AI chip market, where Nvidia and AMD have surged ahead, while also grappling with heavy investments in foundry expansion. Some investors have expressed concerns over Intel’s cash flow and long-term strategy, leading to speculation about a potential breakup of its chip design and manufacturing divisions.

However, Tan’s appointment signals that Intel is likely to stay the course, keeping its foundry and product businesses under one umbrella. “Intel plays an essential role in the technology ecosystem, both in the US and around the world. And, together, I’m confident we can turn our business around,” Tan stated in his employee letter.

Who is Lip-Bu Tan?

    •    Age: 65
    •    Birthplace: Malaysia; raised in Singapore
    •    Education:
    •    Physics degree – Nanyang Technological University
    •    Master’s in Nuclear Engineering – MIT
    •    MBA – University of San Francisco
    •    Career Highlights:
    •    Former CEO of Cadence Design Systems (2009–2021), where he doubled revenue and revitalised chip-design software solutions.
    •    Founder and Chairman of Walden International, a San Francisco-based venture capital firm investing in tech startups.
    •    Previously served on the boards of Hewlett Packard Enterprise (HPE) and SoftBank Group.
    •    Joined Intel’s board in 2022 but stepped down in 2023 over disagreements on Intel’s turnaround strategy.

Recent media reports suggested that major industry players, including Broadcom and TSMC, had evaluated acquiring parts of Intel’s business, with TSMC reportedly discussing a joint venture to operate some of Intel’s chip factories.

However, with Tan now at the helm, analysts believe he will work to strengthen Intel’s foundry ambitions rather than split the company apart.

Tan’s appointment also comes amid increasing US government pressure to expand domestic semiconductor manufacturing.

President Donald Trump’s administration has been urging TSMC to help revive Intel, while threatening tariffs on chip imports from Asia. At the same time, Trump has opposed the $52.7 billion semiconductor subsidy bill, under which Intel has already received grants.

Meanwhile, TSMC recently announced a $100 billion US investment for building five additional chip fabrication plants, further shifting the competitive landscape.

Intel’s turnaround will require patience from investors and bold strategic execution from Tan. While his deep ties to the semiconductor industry and proven leadership at Cadence inspire confidence, the road ahead remains tough, with competition from Nvidia, AMD, and global foundries intensifying.