[News] Intel Taps Veteran Lip-Bu Tan as CEO, with Chip Design and Foundry Units Less Likely to Split

Intel has tapped Lip-Bu Tan as its next CEO, handing the semiconductor veteran and former board member one of the most the daunting challenges in the tech industry, according to Reuters, Bloomberg and the company’s press release.

Tan, 65, will take over as CEO on March 18 and rejoin Intel’s board after stepping down last August, as per Intel. Notably, his appointment is seen as a strong sign that Intel plans to keep its chip design and manufacturing units together, the reports suggest.

The move comes three months after ousting CEO Pat Gelsinger, whose costly turnaround plan struggled to win investor confidence. Bloomberg previously reported that Intel prioritized external candidates for CEO, considering Marvell’s CEO Matt Murphy, former Cadence CEO Lip-Bu Tan, and even ex-TSMC Chairman Mark Liu.

Foundry’s Role Reaffirmed

Interestingly enough, Tan’s appointment comes amid reports that TSMC approached NVIDIA, AMD, Broadcom, and Qualcomm about a joint venture to run Intel’s foundry operations. Notably, in a letter to employees Wednesday, Tan outlined his vision for Team Blue, with foundry playing a key role.

According to Reuters, Tan noted that “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.”

The remarks have been regarded by analysts that Tan aims to keep Intel unified, though any turnaround will take years and test investor patience, as noted by Reuters and Bloomberg.

Analysts cited by the reports praise Intel’s decision, saying that Tan understands both chip design and manufacturing, a crucial skill as Intel Foundry works to improve its tools for customers. Additionally, his experience and stability make him well-suited for the role, the reports add.

Tan’s Background

According to Bloomberg, Tan, born in Malaysia and raised in Singapore, studied physics at Nanyang University before earning a master’s in nuclear engineering at MIT. He later got an MBA from the University of San Francisco.

After a venture investing career, Tan joined Cadence’s board in 2004, became co-CEO in 2008, and took over fully in 2009. He led the company for over a decade before serving as chairman until 2023, Bloomberg explains.

During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered a stock price appreciation of more than 3,200%, as noted by Intel’s press release.

Challenges Ahead

Despite his appointment, Tan faces the tough task of reviving Team Blue. Once a semiconductor leader, the company now grapples with market losses, manufacturing setbacks, declining earnings, and heavy debt. It recently slashed about 15,000 jobs.

Meanwhile, Intel is betting on 18A for a turnaround, as it reportedly works with clients like Broadcom and NVIDIA on test chips.

Despite concerns over potential delays, Intel stated that Panther Lake, its first major in-house product on 18A, will begin production in the second half of 2025. Notably, the company claims the processor will be a key product for commercial customers in 2026.

Read more

• [News] TSMC Reportedly Rallies U.S. Chip Titans for Intel Foundry JV, Including NVIDIA, Broadcom and AMD
• [News] Intel Reportedly Has 30% Wafers Outsourced, Hails TSMC as a Great Supplier

(Photo credit: Intel)