Intel has appointed former board member Lip-Bu Tan, a semiconductor industry veteran, as its new CEO. The move comes after the departure of Pat Gelsinger, who led the company to a major downturn triggering massive layoffs and raising questions about Intel’s ability to survive.
Tan, 65, will take over the role next Tuesday, having previously served as CEO of Cadence Design Systems and joining Intel’s board in 2022. He has a proven track record of creating shareholder value, having led Cadence Design Systems to a 44-fold increase in its stock price during his tenure from 2009 to 2021.
Intel’s stock price rose over 10% on Wednesday after Tan’s hiring was announced, indicating investors believe he will revive the company’s fortunes. The new CEO has deep relationships across the product and foundry ecosystems, which Intel said is exactly what it needs in its next leader.
Tan will rejoin Intel’s board alongside becoming CEO, following Gelsinger’s abrupt retirement amid a deepening downturn that triggered massive layoffs and raised questions about the chipmaker’s ability to survive as an independent company. The appointment marks Intel’s latest attempt to turn around the once-dominant company that helped define Silicon Valley.
Intel’s troubles have been magnified since the advent of artificial intelligence, where Nvidia has become tech’s hottest commodity. However, with Tan at the helm, investors are hopeful for a revival in the chipmaker’s fortunes.
Source: https://abcnews.go.com/Technology/wireStory/intel-hires-former-board-member-new-ceo-struggling-119734295