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Intel has appointed Lip-Bu Tan as its chief executive, ending a months-long search for a new leader after the troubled US chipmaker’s board ousted Pat Gelsinger in December.
Tan, former chief executive of chip design software company Cadence, quit Intel’s board in August last year in an apparent disagreement over the direction of the company under the then-CEO.
He had long been considered a leading candidate to replace Gelsinger. Intel slipped into crisis last year, announcing thousands of lay-offs and pausing big manufacturing projects in Europe.
In a statement, Tan said he had “tremendous respect and admiration for this iconic company” and saw “significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders”.
In a separate letter to employees, Tan said he was “never deterred by challenges” and that he was “confident we can turn our business around”.
Intel shares rose more than 11 per cent in after-hours trading on Wednesday following the announcement.
Chief financial officer David Zinsner and product business chief Michelle Johnston Holthaus had been serving as co-CEOs of Intel on an interim basis. Zinsner will retain the CFO role, with Johnston Holthaus continuing as product CEO.
The pair have presided over a belt-tightening effort at Intel, which has been under way since August, while selling off assets deemed non-essential. They announced the spin-off the company’s venture capital arm earlier this year and have explored the sale of a majority stake in its chipmaking unit Altera.
Intel’s chip manufacturing business has haemorrhaged billions of dollars as it spends heavily on new plants and struggles to regain its technological edge over competitor Taiwan Semiconductor Manufacturing Company.
At the same time, the chip design side of its business has failed to take advantage of booming demand for data centre chips that power artificial intelligence, with Nvidia and AMD establishing a clear lead.
Some investors have mooted a potential split of Intel’s manufacturing and design businesses as a solution to its problems.
But in his letter to employees, Tan said his aim was to build “world-class” businesses in both foundry products.
As the only US company theoretically capable of making leading-edge chips, Intel has been one of the main beneficiaries of a Biden-era subsidy programme aimed at building domestic semiconductor manufacturing capacity.
Trump administration officials have recently explored other options for Intel, including a potential tie-up with rival TSMC.
A White House spokesperson did not immediately respond to a request for comment.
Intel board chair Frank Yeary said Tan was an “exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO”.
Tan led Cadence from 2009 to 2021 and is a well-known figure in the industry.
He joined Intel’s board in 2022, and was given special responsibilities to oversee the company’s troubled foundry business, which ran at a $7bn loss in 2023.
Tan is also a tech investor, as a founding partner of Walden Catalyst Ventures and chair of Walden International.
Tan’s appointment “ends the uncertainty” surrounding Intel, said G Dan Hutcheson, vice-chair of consultancy TechInsights, adding that Tan was “decisive and realistic”.
The “downside” to his appointment, Hutcheson said, was his lack of experience in running an integrated semiconductor manufacturing company that both designs and builds chips.
