14-3-2025 (SANTA CLARA) Intel has appointed industry veteran Lip-Bu Tan as its new chief executive, marking a fresh chapter for the beleaguered chipmaker. The announcement sent the company’s shares surging 12% in after-hours trading.
The appointment comes at a critical juncture for Intel, which has weathered a particularly turbulent period under the leadership of Pat Gelsinger, whose ambitious foundry strategy failed to reverse the company’s declining fortunes. Tan, who previously steered Cadence Design Systems to prominence and brings extensive semiconductor industry expertise, steps into a role that has seen remarkable turnover, becoming Intel’s fourth permanent CEO in just seven years.
The semiconductor giant’s leadership carousel began spinning in 2018 with Brian Krzanich’s departure following an internal scandal, followed by Bob Swan’s brief tenure and Gelsinger’s transformative yet ultimately unsuccessful stint. Most recently, interim co-CEOs David Zinsner and MJ Holthaus had been steering the ship since December.
In the artificial intelligence arena, Intel has found itself significantly outpaced by rival Nvidia, whose graphics processing units have become the industry standard. This shifting landscape was starkly illustrated when Intel was ousted from the Dow Jones Industrial Average last November, replaced by none other than Nvidia – a changing of the guard that reflected the dramatic power shift in the semiconductor sector.
The new chief executive faces formidable challenges, including mounting pressure from investors to streamline operations and potentially restructure the business. Speculation had even swirled about potential interest from competitors, including Qualcomm, amid discussions of spinning off various divisions.
Tan’s appointment has been warmly received by the board, with Frank Yeary, who served as interim executive chair during the search, highlighting Tan’s proven ability to generate shareholder value. In his initial statement, Tan outlined a strategic vision that balances capitalising on existing strengths whilst addressing areas where Intel has fallen behind.
The leadership transition occurs against a backdrop of broader market challenges, with Intel recently reporting mixed financial results and expressing concerns about market conditions and competitive pressures. As part of the reorganisation, Zinsner will resume his previous role as CFO, while Holthaus continues to oversee Intel Products.
