Intel appoints former board member as new CEO
Lip-Bu Tan, who resigned from Intel‘s board of directors last summer, is back with the troubled chipmaker — as its newly appointed chief executive officer.
Intel (Nasdaq: INTC) announced his hiring in an announcement Wednesday after markets closed. The move came nearly three and a half months after former CEO Pat Gelsinger exited as Intel struggled to gain a foothold in the AI market, continued to shed share in its traditional markets, and failed to convince investors that his strategic vision would succeed.
Since then, Intel executives David Zinsner and Michelle Johnston Holthaus have acted as co-CEOs amid a swirl of rumors about Intel’s fate.
Intel is one of the Valley’s largest employers, with more than 12,000 people based out of the company’s Ocotillo campus in Chandler. That campus is also currently undergoing a $32 billion expansion that is expected to deliver this year and create 3,000 jobs.
“I am honored to join Intel as CEO,” Tan said in a statement. “I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.”
Intel shares surge on CEO news
Intel shares surged in early trading Thursday on the news of the CEO switch, gaining $3.38, or 16%, to $24.06, after already getting a bump a day earlier.
Separately, Intel shares were buoyed on Wednesday during another topsy turvy trading day on Wall Street, after Reuters reported that Taiwan Semiconductor Manufacturing Co., which has doubled down on its mega-billion chip factory complex in Phoenix, is looking to work with other big tech players such as Nvidia to form a joint-venture that would run Intel’s foundry business.
When Tan suddenly quit Intel’s board last year he said it was to “reprioritize various commitments,” adding, “I remain supportive of the company and its important work.” But Reuters, citing anonymous sources, reported he had clashed with Gelsinger and others at the company over a workforce that he thought was bloated and a risk-averse culture.
Tan was CEO of Cadence Design Systems for more than a decade until 2021. He is a tech investor as founding managing partner in Walden Catalyst Ventures.
“Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap,” Tan went on in the Intel news release. “I am eager to join the company and build upon the work the entire Intel team has been doing to position our business for the future.”