Intel has appointed Lip-Bu Tan, a veteran in the semiconductor industry, as its new Chief Executive Officer (CEO). Officially taking office on March 18, 2025, Tan will lead Intel in addressing structural issues and reorganizing its business amidst intense competition in the semiconductor market.
The market reacted immediately upon hearing the news of Tan’s appointment. Intel’s stock price rose by over 10% following the announcement, reflecting the anticipation. Industry insiders and investors are keen to see if Intel can overcome its current crisis and restore its competitiveness under Tan’s leadership.
Lip-Bu Tan brings over 30 years of experience in the semiconductor industry. From 2009 to 2021, he served as the CEO of Cadence Design Systems (hereafter Cadence), transforming the once-stagnant company into a leader in the electronic design automation (EDA) sector. During his tenure, Cadence’s revenue more than doubled, and its profitability improved significantly.
In recent years, Intel has faced multiple challenges, including declining market share, production technology delays, and weakened competitiveness in the AI market. The company’s market capitalization has fallen below 100 billion dollars, and its stock price plummeted by over 50% by 2024. Additionally, its foundry business has recorded losses, with an operating loss of 2.55 billion dollars.
Tan has proposed a vision for “The New Intel,” aiming to transform the company into one with strong product competitiveness and an efficient foundry. His key goals include maintaining an integrated design and manufacturing business to close the technology gap and improving competitiveness in the AI and data center markets.
Market experts have mixed reactions on whether Tan can successfully lead Intel. With competitors such as TSMC and Samsung Electronics ahead in semiconductor manufacturing technology, it remains uncertain how quickly Intel can regain its competitive edge. Additionally, the company must address its lagging position in the AI semiconductor market behind Nvidia and AMD.
However, Wall Street generally views Tan’s appointment positively. Stifel analyst Ruben Roy stated, “Based on his successful experience at Cadence, there is a high possibility that Tan can revitalize Intel.” The rise in Intel’s stock price is interpreted as a sign of investors’ expectations.
The industry is closely watching to see whether Tan’s leadership can resolve Intel’s crisis or if the company will become further entangled in the competitive whirlpool without addressing existing issues.