Intel names Lip-Bu Tan as CEO, betting on stability in turnaround

Photo : AFP

Intel has chosen Lip-Bu Tan as its new CEO. He will start on March 18. The company hopes he can help make things better and win back investor trust. This decision comes after the last CEO, Pat Gelsinger, left his job. Under Gelsinger, Intel’s stock lost 60% of its value in 2024.

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Lip-Bu Tan has worked in the semiconductor industry for many years. He was also on Intel’s board before. Now, he will lead Intel through a difficult time. The company wants to improve its chip design, expand its factory business, and keep up with AI technology. In a message to Intel employees, Tan said, “We will work hard to make Intel great again, grow our factory business, and make our customers happy.”

After the announcement, Intel’s stock went up by 12% in late trading. Intel is facing big challenges. It wants to make AI chips but is struggling to keep up with Nvidia and AMD, which are ahead in the market. At the same time, Intel is spending a lot of money to grow its chip factories. Some investors worry about Intel’s future. Some even think the company should split its chip design and factory businesses.

By choosing Tan, Intel shows it plans to keep both businesses together. In his message, Tan said Intel is important for the technology industry in the US and the world. He believes the company can recover and become strong again.

Recently, some reports said that companies like Broadcom and TSMC were thinking about buying parts of Intel’s business. There were also talks about Intel and TSMC working together to run some chip factories. But with Tan as CEO, experts believe Intel will focus on growing its own factories instead of breaking up the company.

The US government also wants Intel to increase chip production in the country. There has been pressure on TSMC to help Intel, while the government has talked about putting new taxes on imported chips. At the same time, a big chip funding bill has faced political challenges.

TSMC has announced plans to invest $100 billion to build five new chip factories in the US. This will make the competition even stronger.

Intel’s recovery will not be easy. Tan has experience and strong connections in the chip industry, but he will need to make bold moves. Nvidia, AMD, and other companies are getting stronger, and Intel must work hard to catch up.