Intel shares rose 13% after the company announced who would take over as CEO
Intel Corporation has named a new CEO to replace Pat Gelsinger, who resigned late last year. The new CEO is little-known but influential tech industry executive Lip-Bu Tan.
Intel Corporation has named a new CEO to replace Pat Gelsinger, who resigned late last year. The new CEO is little-known but influential tech industry executive Lip-Bu Tan.
Intel shares jumped nearly 13% after the announcement of Lip-Bu Tan’s appointment, CNN reported.
Tan spent more than a decade as CEO of Cadence Design Systems, a technology design company, where he led a «reimagining of the company,» according to Intel. He is also a co-founder and managing partner of Walden Catalyst Ventures, which invests in semiconductors, artificial intelligence, cloud, and other advanced technologies.
«Lip-Boo is an exceptional leader whose technology industry experience, deep connections in the product and foundry ecosystems, and proven track record of creating shareholder value are exactly what Intel needs in its next CEO,» Intel Interim Executive Chairman Frank Yeary said in a statement.
When Tan becomes CEO on March 18, Frank will return to his role as independent chairman of the board. Tan will have a massive task ahead of him as he leads Intel, which has largely missed the mobile computing and artificial intelligence revolutions and has fallen behind rivals such as AMD, Qualcomm and Nvidia.
What is known about Lip-Bu Than?
Tan is known for betting on relatively small teams of budding engineers with good ideas for chip design that could successfully compete with existing giants, and has invested in hundreds of startups.
For example, he took a stake in Annapurna Labs, a startup that Amazon later acquired for $370 million, which became the heart of its own chip development division. Amazon says it now uses more of its own CPUs than Intel processors. Tan also invested in Nuvia, which Qualcomm acquired for $1.4 billion in 2021, making it a central part of its bid to compete with Intel in the laptop and PC chip markets.
Lip-Bu Tan continues to actively collaborate with startups that could become either competitors or acquisition targets for Intel. For example, earlier this week he invested in Celestial AI, a startup developing photonic artificial intelligence systems and backed by Intel competitor Advanced Micro Devices (AMD).
Both as an investor and as a CEO, Tan recognized early on a major trend that has gripped the chip industry over the past 30 years: chip design and manufacturing will split into two distinct specialties.
From 2009 to 2021, Tan was CEO of Cadence Design Systems, a chip design software company that he revived. Tan focused Cadence on providing software for complex designs and worked closely with Taiwan Semiconductor Manufacturing Co (TSMC), which had vowed since its founding to focus solely on manufacturing.
During Tan’s time at Cadence, the firm’s stock rose 3,200%, and it attracted Apple as one of its biggest clients as the iPhone maker switched from suppliers like Intel to its own chips.
Recall that in early 2024, Intel revealed that its chip manufacturing business would suffer an operating loss of $7 billion in 2023, and the company decided to lay off more than 15,000 employees in August as part of a $10 billion cost-cutting plan.
In December 2024, Intel CEO Pat Gelsinger resigned after more than 40 years with the company, and also left the board of directors effective December 1, 2024. He returned to the company in 2021, when it was already stagnant, and the experienced top manager’s task was to improve its situation, but he failed to achieve this.
Due to the Intel crisis, there have been reports that the company could be acquired by Elon Musk, or absorbed by competitors Broadcom and TSMC.
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