Intel (INTC) announced it’s appointing Lip-Bu Tan as its new CEO. The chip industry veteran, who previously helmed Cadence Design Systems, takes over from interim Co-CEOs David Zinsner and Michelle Johnston Holthaus. The duo succeeded former CEO Pat Gelsinger who was ousted by Intel’s board in late 2024.
Shares of Intel climbed more than 11% in after-hours trading following the announcement.
The news comes the same day as a Reuters report stating that a consortium of companies lead by TSMC (TSM) and including Nvidia (NVDA) and Broadcom (AVGO) is in talks to take over Intel’s manufacturing business.
Tan is no stranger to Intel. The new CEO initially served on the company’s board in 2022, but left the chip giant in 2024 after reportedly disagreeing with Gelsinger on the company’s turnaround plan, including its third-party contract semiconductor fabrication business, according to Reuters.
“I am honored to join Intel as CEO,” Tan said in a statement. “I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.”
Tan is taking over an Intel that is in the midst of one of the darkest eras in the company’s history. The chip maker has lost its lead in process manufacturing to rival chip builder TSMC and missed out on its opportunity to dominate in the AI space to Nvidia.
Shares of Intel have plummeted 54% over the last year as the company’s revenue has shrunk from its pandemic highs. It now faces increased competition from long-time nemesis AMD (AMD) and a renewed effort by Qualcomm (QCOM) to break into the PC chip space, threatening Intel’s biggest money maker.
The semiconductor giant has also received billions of dollars via the CHIPS Act to help pay for new manufacturing facilities in the US, including a massive campus in Ohio. But Intel says a part of the project is delayed and won’t be completed until 2030. It was initially slated to open in 2025.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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