Intel Names New CEO
Lip-Bu Tan is the new leader at the troubled chip giant. Can he turn the company around?
By Mark LaPedus
Intel has appointed Lip-Bu Tan, a semiconductor industry veteran, as its new chief executive effective March 18.
Tan succeeds interim Co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus. Tan will also rejoin the Intel board after stepping down from the board in August 2024.
As reported, Pat Gelsinger, chief executive of Intel, late last year was forced out from the semiconductor company amid a series of losses, layoffs and product setbacks. At the time, Zinsner and Johnston Holthaus were named interim Co-CEOs.
Now, as the new chief executive at Intel, Tan hopes to revive the troubled company, but that won’t be an easy task. For example, Intel’s foundry business continues to lose money with no end in sight. The company must also ramp up its new process, dubbed 18A, later this year. That’s an uncertainty. On top of that, the company also needs a new AI chip strategy.
Meanwhile, Zinsner will remain executive vice president and chief financial officer, and Johnston Holthaus will remain CEO of Intel Products. Frank D. Yeary, who took on the role of interim executive chair of the board during the search for a new CEO, will revert to being the independent chair of the board upon Tan becoming CEO.
Prior to Intel, Tan served as CEO of Cadence Design Systems from 2009 to 2021. Tan served as a member of the Cadence board for 19 years, from his appointment in 2004 through his service as executive chairman from 2021 to 2023 following his tenure as CEO.
He is also a founding managing partner of Walden Catalyst Ventures and chairman of Walden International. He currently serves on the boards of Credo Technology Group 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. That’s what this moment demands of us as we remake Intel for the future,” Tan said in a letter to Intel’s employees.
Going forward, Intel is expected to revamp its strategy. It’s unclear what Tan will do with the company’s loss-ridden foundry business.
Recently, the Trump administration asked TSMC to buy or invest in Intel’s fabs. According to a report from Reuters, TSMC has pitched Nvidia, AMD and Broadcom to form a joint venture, which would operate Intel's fabs. TSMC would also run the company’s foundry business, but it would not own more than 50% of the unit, according to the report.
That strategy makes little or no sense. For years, TSMC has developed its own foundry processes. Intel has also developed its own processes, which are incompatible with TSMC’s technology. Supporting two separate and incompatible processes would be a drain on TSMC’s resources.
This proposed venture also makes little sense for AMD. Intel and AMD are fierce competitors in the microprocessor space.