Intel, a once-prominent semiconductor company struggling to regain its footing, has appointed Lip-Bu Tan as its new chief executive. The company has faced challenges in recent years, resulting in the ousting of its previous CEO and a significant decrease in its stock price. The U.S. government has expressed concerns about Intel’s ability to compete in the chip industry, especially after the pandemic-related global shortage.
Under the CHIPS Act, Intel was awarded federal funding to build new plants, but doubts have arisen about the company’s ability to complete these projects due to its business challenges. Discussions have even taken place regarding the possibility of having a rival company take over Intel’s manufacturing operations.
Investors responded positively to Mr. Tan’s appointment, with Intel’s stock price increasing by more than 11 percent in aftermarket trading. Tan, known for his successful turnaround of Cadence Design Systems, brings a wealth of experience and expertise to the role.
While he has faced criticism for his investments in Chinese AI and semiconductor companies, Tan’s track record as a business and technology leader is well-regarded. His appointment as Intel’s CEO marks a significant moment for the company as it aims to reclaim its position as a leader in the semiconductor industry. Tan’s background in investing in tech hardware startups and his successful tenure at Cadence Design Systems position him well to lead Intel into a new era of innovation and growth.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
