Intel has appointed semiconductor industry veteran Lip-Bu Tan as its new chief executive officer, effective March 18, 2025, succeeding Pat Gelsinger, who retired last year. Following Tan's announcement, shares surged by 10% in premarket trading, reflecting heightened investor optimism.

Tan, who previously served as CEO at Cadence Design Systems, is stepping into his role at a crucial time for Intel, which has struggled against competitors like Nvidia and TSMC. His appointment comes amid mounting losses that have seen Intel's market value stagnate below $100 billion, as the company aims to reclaim its position in the semiconductor industry.

“Tan in as CEO at Intel was as good as stakeholders could have hoped for,” commented analysts at TD Cowen, noting his extensive connections could attract new business to Intel's contract manufacturing operations. Moreover, the uncertainty surrounding Intel's business direction had previously led to Tan's departure from the board, marking a pivotal shift in leadership just three months following Gelsinger’s ousting due to strategic disagreements.

In his initial communications, Tan emphasized a commitment to maintaining Intel's core chip design and manufacturing operations. He reaffirmed his vision to transform Intel into a top foundry, a term used for companies specializing in contract chip manufacturing. Although skepticism about Intel's turnaround prospects persists, many analysts believe that Tan’s extensive experience could serve as a benefactor during this transitional phase.

Despite challenges posed by increased competition and market share losses, Tan's substantial background in the semiconductor field, where he has driven substantial growth in previous roles, bodes well for Intel's future.Reuters