Intel appoints Lip-Bu Tan as CEO, inventory jumps 11%

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Intel (INTC) introduced it is appointing Lip-Bu Tan as its new CEO. The chip business veteran, who beforehand helmed Cadence Design Methods, takes over from interim Co-CEOs David Zinsner and Michelle Johnston Holthaus. The duo succeeded former CEO Pat Gelsinger who was ousted by Intel’s board in late 2024.

Shares of Intel climbed greater than 11% in after-hours buying and selling following the announcement.

The information comes the identical day as a Reuters report stating {that a} consortium of firms lead by TSMC (TSM) and together with Nvidia (NVDA) and Broadcom (AVGO) is in talks to take over Intel’s manufacturing enterprise.

Tan isn’t any stranger to Intel. The brand new CEO initially served on the corporate’s board in 2022, however left the chip large in 2024 after reportedly disagreeing with Gelsinger on the corporate’s turnaround plan, together with its third-party contract semiconductor fabrication enterprise, in keeping with Reuters.

Lip-Bu Tan in an undated photo. Courtesy Intel — Lip-Bu Tan in an undated picture. Courtesy Intel · Reuters / Reuters

“I’m honored to hitch Intel as CEO,” Tan mentioned in a press release. “I’ve great respect and admiration for this iconic firm, and I see vital alternatives to remake our enterprise in ways in which serve our prospects higher and create worth for our shareholders.”

Tan is taking on an Intel that’s within the midst of one of many darkest eras within the firm’s historical past. The chip maker has misplaced its lead in course of manufacturing to rival chip builder TSMC and missed out on its alternative to dominate within the AI area to Nvidia.

Shares of Intel have plummeted 54% during the last yr as the corporate’s income has shrunk from its pandemic highs. It now faces elevated competitors from long-time nemesis AMD (AMD) and a renewed effort by Qualcomm (QCOM) to interrupt into the PC chip area, threatening Intel’s largest cash maker.

The semiconductor large has additionally acquired billions of {dollars} by way of the CHIPS Act to assist pay for brand spanking new manufacturing amenities within the US, together with a large campus in Ohio. However Intel says part of the undertaking is delayed and received’t be accomplished till 2030. It was initially slated to open in 2025.