Intel on Wednesday named former board member and chip industry veteran Lip-Bu Tan as its CEO and signalled the struggling but storied chipmaker was unlikely to split up its chip-design and manufacturing operations.
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The appointment, effective March 18, comes three months after Intel ousted CEO and company veteran Pat Gelsinger, whose costly and ambitious plan to turn the company around was faltering and sapping investor confidence.
Tan, a former Intel board member, had been seen as a CEO contender thanks to his deep experience in the chip industry, as well as a long-time technology investor in promising start-ups. He was approached by Intel’s board in December to gauge his interest in taking up the job.
“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.
Intel shares surged 12 per cent in extended trading on Wednesday, and analysts welcomed the move that they said was likely to bring some stability to the chipmaker. The company’s stock had declined 60 per cent in 2024.
Intel is undergoing a historic transition as it attempts to emerge from one of its bleakest periods.