Who is Lip-Bu Tan, struggling chipmaker Intel's new CEO
What's the story
Intel has announced the appointment of Lip-Bu Tan as its new Chief Executive Officer (CEO).
The seasoned semiconductor industry expert will take over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus.
Tan's appointment is effective from March 18. He will also rejoin Intel's board of directors after stepping down in August 2024.
Zinsner will continue to serve as CFO while Johnston Holthaus remains CEO of Intel Products division.
Background
Tan's career highlights and industry connections
Tan (65), a Malaysian-born executive, has had an illustrious career in the tech industry. He was previously the CEO of Cadence Design Systems from 2009 to 2021.
Prior to that, he held managerial positions at EDS Nuclear and ECHO Energy and was a partner at Walden USA investment fund.
He founded venture capital firm Walden International in 1987.
Tan also sits on the boards of Hewlett Packard Enterprise, Schneider Electric, and SoftBank.
Strategic direction
Tan's vision for Intel's future
Upon his appointment, Tan expressed his vision for Intel, saying the company will be an "engineering-focused company" under his leadership.
He stressed the need to develop top-notch products, listen to customers attentively, and uphold commitments made to build trust.
He also highlighted Intel's responsibility toward its shareholders and pledged a renewed focus on customers as a means to achieve this goal.
Performance
Tan's track record and the challenges ahead
During his time at Cadence Design Systems, Tan had more than doubled the company's revenue and the stock price saw a huge increase, going up by over 3,200%."
His appointment comes at a time when Intel is struggling with a falling stock value and layoffs.
The share has crashed 52% in a year and the chipmaker has plans to lay off 15% of its workforce after disappointing second-quarter results.
Tan's leadership is expected to restore stability to the chipmaker.