Intel on Wednsday Named Former Board Member and Chip Industry Veteran Lip-Bu Tan as its CEO and Signaled the Struggling but storied chipmaker was unlikely to split up its chip-design and manufaccate operations.
The appointment, Effective March 18, Comes Three Months After Intel Oouted Ceo and Company Veteran Pat Gelsinger, Whoose Costly and Ambitauous Plan to Turn the Company Around Was Faltering and Sapping Investor Confidence.
TAN, A Former Intel Board Member, Had Been Seen as a Ceo Contender Thanks to his Deep Experience in the Chip Industry as well as a longtime technology in promising startups. He was approached by Intel’s Board in December to Gauge His Interest In Taking Up The Job, Reuters Had Reported.
“Togeether, we will work hard to restore intel’s position as a world-class products company, Establish Oorselves as a awsa-Class Foundry and Delight Our Customers LIKE NEVER BAFORE,” In a letter to intel employEs on Wednsday.
Intel shares surgged 12 percent in extended trading on wedding, and analysts welcomed the move that they said was luckly to brings some stability to the chipmaker. The company’s stock had declined 60 percent in 2024.
Intel is undergoing a historic transition as it attempts to emerge from one of its bleakest periods.
While Struggling to Cash in a boom in investment in advanced ai chips that has fired up the fortunes of market leader nvidia and other chipmakers, the company is spending heavily to bes Chips for other companies, leading some investors to worry about pressure on its cash flows.
Media reports in the past two months said chip rivals including broadcom was evaluating Intel’s Chip Design and Marketing Business, while Tsmc has separately Stodiated Controlling some or all of all of all of all of all of all of all of all of all of all of all of all of all of all of all Potentially as part of an investment consortium or other structure.
REPORTED on Tsmc Had Approached Some of Intel’s biggest potential manufacturing customers about forming a joint venture to operate venture to operate in intertned venture to operate intert Administration Requested TSMC to Help Turn Around the Troubled Chipmaker.
“This (tan’s appointment) is welcome news,” said Jack E. Gold, Analyst and President of J. Gold Associates, Which Covers The Chip Industry.
Tan has an “Intrinsic undersrstanding of the semiconductor industry, bot from a product design as as cell as the needs of enabling chip manuafacturing – an acetel fence that intel fourths User-friendly and accessible for potential customers, “He said.
Gold and other analysts agreed that tan’s messaging looked like he wanted to keep the company togethr, thought they said any transformation of the chipmaker would take tax years and require investors to beet.
Long admired
“Intel is a company I have long admired,” tan said in his letter on wedding, expressing confidence in turning the business Around.
Tan, 65, is a malaysian-born executive who Grew up in Singapore and Holds Degrees in Physics, Nuclear Engineering and Business Administration.
He served as ceo of intelly supplier and chip-design software cadence design systems from 2009 to 2021.
Tan left Intel’s Board Last Year Over Disagreements on How to Turn Around the company. He Grew Frustrated by the company’s Large Workforce, its approach to contrast manufacturing and intelly’s risk-averse and bureaucratic culture, reuters previously reported.
Tan will rejoin the board, Intel said.
TAN “Brings Stability and Experience to a Role that Needs Someone of His Caliber, which is where I believe the company will likely stay the courses with his appointment and control Product, “said anshel sag, Principal analyst at moor insights & strategy.
Tan’s appointment comes as trump pushes for more manufacturing in the country, threatening tariffs on importants that have rolesed global markets for weeks.
While trump has made no direct comment about intelly publicly, he has said that asian countes including taiwan have snatched away the united states in chipmaking.
Earlier this month, Intel Rival Tsmc said at a press event with trump that it plans to make a fresh $ 100 billion (roughly Rs. Facilites.
Trump, Thought, is Trying to Kill A 2022 Bipartisan Law to Give $ 52.7 Billion (Roughly Rs. 4,58,835 Crore) in Subsidies for Chips, Under Which Intel Has Recove Grants.
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