Intel Names Chip Veteran Lip-Bu Tan as New CEO to Lead Turnaround

Strategic Leadership Shift for Struggling Semiconductor Giant

Intel has announced the appointment of Lip-Bu Tan, a seasoned chip industry expert and former board member, as its new Chief Executive Officer, effective March 18, 2025, signaling a pivotal shift for the beleaguered semiconductor titan. This move follows the departure of former CEO Pat Gelsinger in December 2024, whose ambitious yet faltering turnaround strategy left Intel grappling with declining investor confidence and a 60% stock drop in 2024. Tan, widely recognized for his transformative leadership at Cadence Design Systems and deep ties across the semiconductor ecosystem, steps into the role amid Intel’s efforts to reclaim its footing in the fiercely competitive chip market, particularly against AI chip leader Nvidia and manufacturing powerhouse TSMC. With Intel shares surging 11% in after-hours trading following the news, the appointment underscores a renewed hope for revitalizing the company’s legacy as a global technology leader.

Tan’s extensive background positions him uniquely to address Intel’s multifaceted challenges, from lagging innovation in artificial intelligence chips to heavy investments in its nascent foundry business. Born in Malaysia and raised in Singapore, the 65-year-old executive holds a Bachelor of Science in physics from Nanyang Technological University, a Master of Science in nuclear engineering from MIT, and an MBA from the University of San Francisco. His career pinnacle includes a 12-year tenure as CEO of Cadence Design Systems from 2009 to 2021, where he orchestrated a remarkable turnaround, doubling revenue, expanding operating margins, and boosting stock value by over 3,200%. Beyond Cadence, Tan has cultivated a reputation as a shrewd technology investor through his roles as founding managing partner of Walden Catalyst Ventures and chairman of Walden International, alongside board positions at companies like Credo Technology Group and Schneider Electric. His contributions earned him the Robert N. Noyce Award in 2022, the semiconductor industry’s highest honor, reflecting his profound influence on chip design and manufacturing innovation.

The timing of Tan’s appointment aligns with Intel’s critical juncture as it seeks to pivot from one of its most challenging periods in decades. Once a dominant force in personal computing, Intel has struggled to capitalize on the explosive growth of AI-driven chips, a domain where Nvidia has soared, while its costly push to become a leading contract manufacturer has strained cash flows and rattled investors. Tan’s predecessor, Gelsinger, spearheaded an aggressive plan to rebuild Intel’s manufacturing prowess, including securing $52.7 billion in U.S. government subsidies under the 2022 CHIPS Act. However, execution stumbles and a risk-averse corporate culture hindered progress, prompting his exit. Tan, who left Intel’s board in August 2024 over strategic disagreements, including frustrations with its bloated workforce and sluggish foundry adoption, now returns with a mandate to steer the company toward stability and growth. His reappointment to the board alongside his CEO role suggests a unified vision to maintain Intel’s integrated design-and-manufacturing model, despite speculation of potential splits or partnerships with rivals like Broadcom or TSMC.

In his initial statement to Intel employees, Tan outlined a clear roadmap centered on engineering excellence and customer satisfaction, key pillars for reversing the company’s fortunes. He emphasized Intel’s “powerful and differentiated computing platform,” its expansive customer base, and a manufacturing footprint that he believes is strengthening daily as the company rebuilds its process technology roadmap. “I am honored to join Intel as CEO and see significant opportunities to remake the business to better serve customers and create shareholder value,” Tan stated, expressing eagerness to collaborate with Intel’s team to position the company for long-term success. Analysts interpret this as a commitment to enhancing Intel’s product competitiveness, particularly in AI and mobile chips, while refining its foundry services to attract external clients, a critical step in competing with TSMC, the world’s leading contract chipmaker.

The market’s enthusiastic response, with Intel’s stock climbing 11% in extended trading, reflects optimism about Tan’s ability to deliver results, drawing parallels to his Cadence success. Industry experts see his appointment as a stabilizing force for Intel, which has faced mounting pressure from both technological and geopolitical fronts. The U.S. government, under President Donald Trump, has intensified calls for domestic chip production, with Trump recently criticizing Asian dominance in semiconductors and threatening tariffs that could disrupt global supply chains. Concurrently, TSMC’s $100 billion pledge to expand U.S. facilities, announced earlier in March 2025, underscores the escalating stakes. Intel, a beneficiary of CHIPS Act funding, must now execute its foundry ambitions under Tan’s leadership, even as Trump seeks to dismantle the very subsidies supporting those efforts, adding a layer of complexity to the turnaround.

Tan inherits a company at a crossroads, with its integrated structure under scrutiny amid rumors of potential divestitures or joint ventures. Reports suggest TSMC has explored operating Intel’s factories, possibly through a consortium, while Broadcom has evaluated Intel’s design business. Yet, Tan’s messaging hints at preserving Intel’s cohesion, leveraging its dual strengths in chip design and production to regain market share. His experience at Cadence, where he fostered a customer-centric culture, could prove instrumental in addressing Intel’s foundry shortcomings, such as making its tools more accessible to prospective clients. Analysts caution, however, that transformation will demand patience, with years required to overhaul Intel’s technology roadmap and rebuild trust with investors and customers alike.

Adding depth to the leadership transition, Tan succeeds interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who assumed control after Gelsinger’s exit. Zinsner will remain CFO, ensuring financial continuity, while Johnston Holthaus continues as CEO of Intel Products, overseeing the company’s core offerings. This structure, paired with Tan’s strategic oversight, aims to balance immediate operational needs with a long-term vision. His past critiques of Intel’s bureaucracy and risk aversion suggest a cultural shake-up may also be on the horizon, potentially streamlining operations to accelerate decision-making and innovation.

For stakeholders, Tan’s appointment offers a blend of proven expertise and fresh perspective, critical for navigating Intel’s challenges in a rapidly evolving industry. His focus on engineering excellence could bolster Intel’s competitiveness in AI chips, where Nvidia’s dominance has exposed Intel’s lag, while his foundry experience may unlock new revenue streams as a contract manufacturer. Geopolitical dynamics, including U.S.-China tensions and Trump’s manufacturing push, further elevate the stakes, positioning Intel as a linchpin in America’s semiconductor resurgence. As Tan takes the helm, the industry watches closely, anticipating whether his leadership can restore Intel’s stature as a world-class innovator and manufacturer, delivering value to shareholders and customers in an era of unprecedented technological disruption.