intel taps lip-bu tan as ceo, gelsinger out
Santa Clara, Wednesday, 12 March 2025.
Intel is set to welcome Lip-Bu Tan as its new CEO, effective March 18, replacing Pat Gelsinger. Tan, formerly CEO of Cadence Design Systems, brings a wealth of experience, including a period where he oversaw a 3,200% appreciation in Cadence’s stock price. The move signals a potential strategic pivot for the semiconductor giant as it navigates a competitive market. Tan will also rejoin Intel’s board, aiming to leverage his expertise to drive shareholder value.
tan’s track record
Lip-Bu Tan’s appointment as CEO is effective March 18 [1][2]. He previously served as CEO of Cadence Design Systems from 2009 to 2021 [1][2]. During his tenure, Cadence saw significant growth [1]. The company’s revenue more than doubled, operating margins expanded, and its stock price experienced a substantial increase [1]. Specifically, the stock price appreciated by over 3,200% while Tan was at the helm [1]. This history of value creation is a key factor in Intel’s decision to bring him on board [1][2].
investor confidence
Intel’s board is expressing confidence in Tan’s ability to lead the company forward [1][2]. Frank D. Yeary, the interim executive chair of the board, stated that Tan’s technology expertise and relationships across the product and foundry ecosystems are precisely what Intel needs [1][2]. Yeary believes Tan has a proven track record of creating shareholder value [1][2]. The board also thanked Dave Zinsner and Michelle (MJ) Johnston Holthaus for their leadership as interim co-CEOs, noting their role in maintaining stability [1][2].
challenges and opportunities
Intel faces considerable challenges, including manufacturing delays and increased competition [3]. In 2020, Intel’s shares fell by 17%, while the average chip stock surged by 50% [3]. Tan acknowledges Intel’s strong computing platform and manufacturing footprint [1]. He aims to build upon the existing work to position Intel for future success [1]. This includes improving execution, rebuilding product leadership, and advancing the company’s foundry strategy [1][2].
leadership transition
The transition from Pat Gelsinger to Lip-Bu Tan marks another leadership change for Intel [1][2]. Gelsinger was appointed CEO in early 2021, replacing Bob Swan [3]. When Gelsinger’s appointment was announced, Intel’s shares jumped as much as 13% [3]. The company is hoping that Tan’s appointment will similarly boost investor confidence [1][2]. Tan stepped down from Intel’s board in August 2024 and will now rejoin as CEO, highlighting his ongoing involvement with the company [1][2].