Intel Corp appointed longtime technology investor and executive Lip-Bu Tan as CEO on Wednesday, effective March 18.
Tan will succeed interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who took over for former CEO Pat Gelsinger when he stepped down in December after nearly four years at the helm.
Tan will also rejoin Intel’s board of directors after serving on the board from August 2022 to August 2024, according to his LinkedIn. He was previously the CEO of U.S. chip design software company Cadence Design Systems from 2008 to 2021, and served on its board for 19 years.
Frank Yeary, who led the search for Intel’s CEO as interim executive chair of the board, described Tan as an exceptional leader and innovator who builds high-performance cultures. Cadence more than doubled its revenue, expanded its operating margins and delivered a stock price appreciation of 3,200% under Tan’s leadership, Yeary said in a message to employees.
Tan is “exactly what Intel needs in its next CEO,” Yeary said.
Over the past year, Intel has looked to cut costs and make its internal foundry business profitable as it struggles with financial challenges. The foundry business posted a loss of $13 billion in its first year, but executives are hopeful for it to break even by the end of 2027.
The company also recently pushed back its Albany, Ohio, semiconductor project by five years, noting that it wants to take a prudent approach that ensures completion in a “financially responsible manner.”
In addition to Cadence, Tan is a founding managing partner of Walden Catalyst Ventures and chairman of Walden International, which are both investment firms focused on emerging technology startups. He is also executive chairman of computer AI hardware manufacturer SambaNova Systems.
As part of the appointment, Zinsner and Johnston Holthaus will return to their former c-suite roles as Intel’s EVP and CFO, and CEO of Intel Products, respectively, according to the release. Yeary will also return to serving as an independent board chair following Tan’s appointment.
In a message to employees, Tan said Intel will be an engineering-focused company under his leadership tasked with building trust with customers, taking risks to leapfrog the competition and fostering a winning culture.
“[T]ogether, I’m confident we can turn our business around,” Tan said.
