Intel hires Lip-Bu Tan as new CEO to drive AI and foundry business and leverage chip design, manufacturing and shareholding experience
Intel has hired Lip-Bu Tan as its new Chief Executive Officer (CEO) effective March 18, closing a three-month search process since the departure of previous leadership.
The hiring is at a critical time for Intel as it attempts to reclaim market share from competitors while simultaneously establishing its foundry services business – a chip-making operation that produces chips designed by others.
Frank D. Yeary, Non-Executive Chairman of the board of directors for Intel, shared the news with employees, touting Tan’s industry experience and previous history retooling technology firms: “Lip-Bu is a superb leader whose technology industry expertise, strong network across our product and foundry ecosystems and history of driving shareholder value is just what Intel needs in its next CEO.”
Who is Lip-Bu Tan
Tan was also former Chief Executive Officer of Cadence Design Systems from 2009 to 2021, a premier supplier of electronic design automation software and engineering services used in chip design.
During his time, Cadence doubled its top line, expanded operating margins and recorded more than 3,200% stock price appreciation.
Tan’s experience at Intel is both through partnership experience in working at Cadence and also through sitting on Intel’s board of directors in a recent assignment, enabling him to comprehend the issues that the company is experiencing today.
He also joins Intel following his entrepreneurial experience in venture capital in working at Walden International, an investment firm he founded and as Chairman of Walden Catalyst, a venture capital fund specializing in AI and semiconductor investments.
Intel’s transition retains stability during interim leadership phase
The CEO reveal marks the end of an interim leadership phase under Michelle Johnston Holthaus and Dave Zinsner, who have run the company since last December when past CEO Pat Gelsinger stepped down.
Since assuming command last December, Michelle and Dave have brought discipline and focus necessary to enhance our execution, stabilise our performance and position our company for the future, says Yeary.
“The company is in healthier shape today than it was three months ago.”
The new structure will provide continuity, with Johnston Holthaus continuing as CEO of Intel Products and Zinsner resuming his full-time role as Chief Financial Officer. The two executives will report directly to Tan in the new structure.
This style of leadership is a reflection of Intel’s dual-pronged business model, in which traditional integrated device manufacturing is combined with the newer foundry service division that competes directly with firms such as Taiwan Semiconductor Manufacturing Company (TSMC).
Intel board believes in company strategy irrespective of market pressure
Intel has also faced fierce competitive and financial pressures in recent years, losing ground in key segments while making significant investments in capital to establish manufacturing capabilities – which have resulted in layoffs and financial results that have disappointed investors.
Despite such issues, board communication underscored continued confidence in the company’s strategic direction under which huge manufacturing investments will be undertaken at several global sites including the US, Ireland, Poland, Germany and Israel.
“The board is resolute in its belief regarding Intel’s compelling future. Through your hard work, we are making continued progress toward our goals of improving operating performance and serving our customers more effectively,” Yeary tells employees.
Now, Tan’s appointment signals Intel’s focus on optimizing implementation of its existing strategy rather than a seismic directional change – like his experience in electronic design automation placing him at the intersection of chip design and manufacturing ecosystems.
“The board is confident that with Lip-Bu at the helm, we will make the moves necessary to deliver to our customers as a world-class products company and as a world-class foundry,” Yeary says.
