Intel has announced that it has a new CEO: Lip-Bu Tan. Tan was the CEO of chip design company Cadence from 2009 to 2021, which means he brings 12 years of experience to the table. He will officially step into the role on March 18, following Pat Gelsinger’s departure in December 2024.
The announcement comes after months of speculation regarding Gelsinger’s exit. Gelsinger abruptly announced last year that he would be retiring. However, inside sources suggested he was pushed out by the board. Intel is facing increasing competition from Arm-based chipsets. There are also rumors of a potential 20% stake acquisition by TSMC.
Tan expressed optimism about Intel’s potential. “Intel has a powerful and differentiated computing platform, a vast customer installed base, and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap. I am eager to join the company and build upon the work the entire Intel team has been doing to position our business for the future.”
Intel’s new CEO inherits a company at an interesting point in time. Over the past few years, Intel has struggled to keep pace with competitors, particularly as Arm-based chips gain popularity in both the consumer and enterprise markets. For example, Apple ditched Intel and transitioned to its own silicon.
Qualcomm followed suit shortly after with its Snapdragon X Elite chipsets. This has raised the question of whether Intel’s x86 CPUs are still relevant in today’s technological landscape.
Goodbye Pat Gelsinger
Tan follows in the footsteps of Pat Gelsinger, who served as CEO from 2021 to 2024. Unlike Bob Swan, his predecessor, who focused on streamlining operations and improving financial performance, Gelsinger prioritized technological innovation. Under his leadership, Intel introduced the IDM 2.0 strategy, aimed at revamping Intel’s manufacturing capabilities and boosting its foundry services.
This made sense as companies like TSMC were dominating the semiconductor manufacturing industry. Boosting Intel’s foundry services would at least allow Intel to find alternate sources of revenue. It would also serve as an alternative to TSMC and Samsung.
He also spearheaded initiatives to accelerate manufacturing nodes and worked with Amazon Web Services to produce AI chips. However, despite these efforts, Intel’s struggles persisted, leading to a shake-up at the top.
With Intel’s new CEO now at the helm, all eyes are on Tan to see if he can steer the company back to its former glory days. His expertise in chip design could be the key to Intel reclaiming lost ground, but he has his work cut out for him.
