Intel has named chip industry veteran Lip-Bu Tan as its new CEO, effective March 18. The 65-year-old spent 12 years as the CEO of Cadence Design Systems, a company specializing in software and hardware solutions for chip design, during which he doubled its revenue. Tan also founded a venture capital firm that has backed numerous successful tech startups and served on the boards of major tech companies, including Intel, Hewlett Packard Enterprise, and Schneider Electric.
“Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before,” Tan said in a letter to Intel employees on Wednesday.
TechRepublic breaks down key details about the Malaysian-born executive as he takes charge of the U.S. tech giant.
1. Tan was on Intel’s board of directors
As CEO of Cadence Design Systems, Tan oversaw the company’s supply of design solutions and IP to Intel. He also served on Intel’s board of directors from 2022 to 2024. This was a significant era for the company as it was shifting towards its IDM 2.0 strategy, an effort aimed to modernize its manufacturing capabilities.
Tan resigned from the board in August, citing a “personal decision based on a need to reprioritize various commitments.” His departure signaled his independence. According to Reuters, he was frustrated with the company’s large workforce and its bureaucratic, risk-averse culture.
2. Tan is replacing ousted CEO Gelsinger
He is replacing Pat Gelsinger, who was removed by Intel’s board in December 2024 following more than 30 years at the company. Gelsinger’s ambitious turnaround plan — which involved funnelling money into new fabs — failed to provide notable market share growth or profitability.
Following Tan’s appointment, Intel’s shares surged by 12%, reflecting investor optimism. Unlike an ex-financier who might push for immediate gains through divestitures, Tan is expected to take a more strategic, long-term approach rather than adhering to legacy processes.
3. Tan will try to revive Intel’s chip business
Once a dominant force in the CPU industry, Intel has struggled amid the AI boom and shifting industry dynamics. Unlike rivals who specialize in either chip design or manufacturing, Intel continues to operate in both sectors — a strategy that has left its fabrication efforts lagging behind TSMC.
In 2024, Intel’s stock declined by 60%, and the company fell from first to second place on Gartner’s list of top global semiconductor vendors by revenue growth. With a background in both chip design and manufacturing, Tan is well-positioned to lead Intel’s turnaround.
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4. Tan will have to negotiate with U.S. chipmakers
Intel faces pressure from competitors circling its custom chip foundries. In recent weeks, TSMC, NVIDIA, Broadcom, and AMD have been considering a joint takeover of Intel’s custom chip foundries, with NVIDIA and Broadcom initiating manufacturing testing.
TSMC and Broadcom were also considering splitting Intel’s manufacturing and design arms, a move Intel execs are reportedly pushing back against. Tan’s leadership will be critical in determining how these negotiations unfold.
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5. Tan has Trump’s support
According to Reuters, U.S. President Donald Trump encouraged TSMC to help revive Intel by taking over some of its U.S. chipmaking factories. Trump, who has prioritized strengthening domestic chip production, opposes any plan that would result in full foreign ownership of Intel’s assets.
As a result, TSMC is reportedly limiting its stake in Intel to under 50% to ensure regulatory approval under a potential Trump administration.
