Intel has a new CEO: Meet Lip-Bu Tan

Lip-Bu Tan, 65, a highly respected entrepreneur, investor, and executive in the semiconductor and technology industries, has been named the next CEO of Intel.

He replaces, Pat Gelsinger, who was pushed out by the board for a perceived failure to rejuvenate Intel’s product lineup.

Tan, a Malaysian-born US business executive, will assume the role on March 18, the company said in a statement Wednesday. He will rejoin the board as well after stepping down in August 2024.

As a semiconductor veteran, he faces one of the toughest jobs in the chip industry. 

Tan's main task at Intel: restoring the fortunes of a pioneering chipmaker. Intel once dominated the semiconductor field for decades, but is struggling with market-share losses, manufacturing setbacks and a precipitous decline in its earnings.

It’s also burdened with debt and recently had to slash about 15,000 jobs, as per Bloomberg.

Intel shares jumped more than 11% on the news, after rising 4.6 per cent in regular New York trading on Wednesday.

The stock was down more than 54 per cent in the past 12 months as the company’s future became increasingly murky, leaving its market cap at $89.5 billion, Bloomberg reported.

With decades of leadership experience, Tan has played a pivotal role in advancing electronic design automation (EDA), venture capital, and corporate strategy.

Tan is widely regarded as a visionary leader, bridging technology innovation with strategic investment.

Passionate about empowering startups and fostering cutting-edge research, Tan remains a key influencer in shaping the digital economy.

His work as CEO of Cadence Design Systems and Walden International has had a profound impact on the semiconductor industry, fostering new advancements in AI, automation, and digital design.

His influence extends beyond business, as he continues to mentor the next generation of technology entrepreneurs and investors.

Cadence Design Systems: Chairman
October 2008 – Present (16 years 6 months)
Lip-Bu Tan has been a key figure at Cadence Design Systems, a global leader in electronic design automation software, where he serves as Chairman. Under his leadership, Cadence has continued to drive innovation in AI-driven chip design, system verification, and semiconductor solutions, ensuring the company remains at the forefront of the industry.

Walden International: Founder & Chairman
1984 – Present (41 years 3 months)
As the founder and chairman of Walden International, a venture capital firm specializing in early-stage technology investments, Lip-Bu Tan has been instrumental in funding and mentoring groundbreaking semiconductor, software, and AI startups. His investment acumen has significantly contributed to the growth of numerous successful technology companies worldwide.

Schneider Electric: Non-Voting Board Member
October 2018 – Present (6 years 6 months)
Lip-Bu Tan serves as a Non-Voting Board Member at Schneider Electric, a global leader in energy management and automation. His insights help guide the company’s technological and strategic directions, particularly in the areas of digital transformation and sustainability.

Aquantia: Lead Director
January 2016 – Present (9 years 3 months)
At Aquantia, a pioneer in high-speed Ethernet connectivity solutions, Lip-Bu Tan holds the position of Lead Director, providing strategic oversight as the company advances next-generation networking technologies.

Hewlett Packard Enterprise (HPE): Board Member
As a Board Member of HPE, Lip-Bu Tan contributes to the company’s innovation strategy, cloud computing, and enterprise IT solutions, helping shape its long-term growth.

His key challenge: creating an artificial intelligence accelerator chip that can rival the products of Nvidia Corp.

Nvidia company, once in Intel’s shadow, has seen its revenue and valuation skyrocket over the past two years due to the AI computing boom.

Gelsinger had also set out to turn Intel into a chip foundry — a contract manufacturer that makes products for outside clients — but that effort is still in its early stages.

Intel remains one of the world’s biggest chipmakers by revenue, with more than $50 billion in annual sales. Its processors are the main component in more than 70 per cent of the world’s personal computers and server machines.

And the company’s factories still represent a large chunk of worldwide capacity for advanced manufacturing.

But slip-ups in product development have allowed rivals to gain an edge. Besides Nvidia, Advanced Micro Devices Inc. (AMD) has won market share in PCs and servers — and is better poised than Intel to make inroads in AI chips. In the shadow of those challenges, Intel isn’t even in the top 10 chip industry companies worldwide by market value. 

Cadence, along with rival Synopsys Inc., dominates the market for computer-aided design used to create semiconductors.

Their software and services have become increasingly important with the rise in complexity of the devices. Engineers use their products to create blueprints for the arrangement of tens of billions of transistors and connecting wires — the underlying architecture of the tiny components.

Intel’s new leader will have to navigate approaches from suitors and decide whether to stick with Gelsinger’s stance that a breakup is unnecessary. Some on Wall Street have suggested splitting up the company’s chip-design and manufacturing units, which are already separated operationally.

Qualcomm Inc., Broadcom Inc. and Arm Holdings Plc have explored the idea of acquiring all or part of Intel, Bloomberg News has reported. If formal approaches are made, Intel’s board will be under pressure to consider scenarios that Gelsinger may have rejected.

The Santa Clara, California-based company is also the biggest recipient of grants from the US government under the Chips and Science Act, a Biden administration push to reinvigorate domestic semiconductor production.

The Chips Act money, totaling nearly $8 billion, is contingent on Intel completing milestones, including the building and equipping of new factories around the US.

Intel has already delayed some of its building plans, including for a complex in Ohio. President Donald Trump also has spoken out against the program. 

(With inputs from Bloomberg)