New Delhi: Intel, one of the biggest names in the chipmaking industry, has brought in Lip-Bu Tan as its new CEO, this move is part of Intel’s efforts to reclaim its spot at the top after facing tough times in recent years.
Intel’s Challenges
Once a leader in the semiconductor industry, Intel has struggled to keep up with big shifts in technology, the company missed the rise of mobile computing, which took off after Apple launched the iPhone in 2007. More recently, Intel has fallen behind in artificial intelligence, an area where Nvidia has surged ahead. Today, Nvidia’s market value has soared to $2.8 trillion, while Intel’s stands at just $90 billion.
Financially, things haven’t been great either. Since 2021, when Pat Gelsinger became CEO, Intel’s stock price dropped by 60%, wiping out $160 billion in shareholder value. The company had to lay off around 17,500 employees (about 15% of its workforce) and even stopped dividend payments to cut costs. Last year, Intel reported a $19 billion loss.
Why lip bu tan?
Lip-Bu Tan is a well-known name in the semiconductor industry, he was previously the CEO of Cadence Design Systems, a company that specializes in chip design software. During his time there (from 2009 to 2021), Cadence’s stock price shot up by 44 times.
Tan also has past ties to Intel, he joined its board in 2022 before stepping down last year. Now, he’s returning as both CEO and a board member. Intel’s interim Executive Chairman, Frank Yeary, called him the right leader to turn things around and create value for shareholders.
What’s next?
Investors seem hopeful about this change, Intel’s stock jumped over 10% in extended trading after the news broke. Tan’s strong track record, including winning the Semiconductor Industry Association’s 2022 Robert Noyce Award (named after an Intel co-founder), makes him a promising choice to lead Intel’s recovery.
What different sources say:
Focuses on Intel’s historical role in Silicon Valley and its struggles to adapt, and highlights Tan’s background, including his skillset at Cadence and previous role on Intel’s board, looks at Intel’s broader challenges and why Tan’s appointment is a big deal for the semiconductor industry.
