The appointment of Lip-Bu Tan as Intel’s CEO, effective March 18, follows the ousting of Pat Gelsinger, whose costly turnaround plan had weakened investor confidence. Tan, a former Intel board member and seasoned technology investor, was approached by Intel’s board in December regarding the CEO position.
In a letter to employees, Tan emphasized the goal of restoring Intel’s status as a world-class products company and foundry. Intel shares rose 12% in extended trading, with analysts welcoming the move as stabilizing for the chipmaker after a 60% stock decline in 2024.
Tan, 65, has an extensive background in physics, nuclear engineering, and business administration. He left Intel’s board last year due to disagreements on the company’s direction, particularly concerning its workforce size, contract manufacturing approach, and risk-averse culture.
Analysts believe Tan’s leadership could help maintain the company’s unity while acknowledging that any transformation will require years and investor patience. Tan’s appointment aligns with President Trump’s push for increased domestic manufacturing amid threats of tariffs on imports.
Though Trump has not directly commented on Intel, he has criticized Asian countries for surpassing the U.S. in chipmaking. Meanwhile, Intel rival TSMC plans a $100 billion investment in the U.S., including building five additional facilities. Trump is also attempting to repeal a 2022 bipartisan law providing $52.7 billion in subsidies for chipmakers, under which Intel received grants.
— news from Reuters