Intel has announced the appointment of Lip-Bu Tan as its new CEO, effective March 18, as the company works to recover from a series of financial setbacks and regain profitability. Tan, formerly the CEO of Cadence, a chip design services firm, replaces Pat Gelsinger, who stepped down in December amid board dissatisfaction with his turnaround strategy.
In a letter to employees, Tan expressed confidence in Intel’s future, saying, “Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. Together, we can turn our business around.” He emphasized that under his leadership, Intel would focus on engineering excellence and customer-driven innovation.
Tan, who was a board member at Intel from 2022 to 2024, is returning to the board alongside his new CEO role. Meanwhile, David Zinsner and Michelle Johnston Holthaus will continue their roles as CFO and CEO of Intel Products, respectively.
Intel has faced declining revenues for the past three quarters, including a 7% year-over-year revenue drop and a $126 million net loss last quarter. As a result, the company has been exploring restructuring opportunities, with reports suggesting TSMC might take a stake in Intel’s foundry division in a joint venture.
Intel’s share price saw a notable rise from $20.68 to $22.88 after hours, reflecting investor optimism following the leadership change.
Sources:
- Intel Press Release [Intel]
- Financial Data [NASDAQ: INTC]
