Semiconductor powerhouse Intel has appointed Lip-Bu Tan as its new CEO, marking a pivotal shift for the company at a time of both challenges and opportunities. Tan, a seasoned industry leader and former CEO of Cadence Design Systems, steps in following the retirement of Pat Gelsinger three months ago. In the interim, Intel CFO David Zinsner and executive VP Michelle Johnston Holthaus served as co-CEOs.
Intel’s Struggles and Gelsinger’s Legacy
When Gelsinger took the reins in February 2021, Intel was already trailing competitors in semiconductor advancements. The company had missed the smartphone revolution and faced major setbacks in chip fabrication. Meanwhile, the semiconductor industry was undergoing rapid consolidation, with AMD acquiring Xilinx for $35 billion and Analog Devices buying Maxim for $21 billion in late 2020.
Gelsinger’s tenure focused on a modernization strategy, known as Integrated Device Manufacturing (IDM). This plan aimed to restore Intel’s dominance through:
✅ A $20 billion investment in two new Arizona chip manufacturing plants
✅ Expansion of U.S. and global chip production
✅ A $5.4 billion acquisition of Tower Semiconductor to boost foundry services
However, the Tower Semiconductor deal collapsed in 2023 due to regulatory hurdles, stalling Intel’s foundry ambitions. By September 2024, Intel transitioned its chip foundry division into an independent subsidiary.
The Challenges Intel Faces
The months leading up to Gelsinger’s departure were particularly tumultuous:
🔻 Stock plummeted 50% in 2024 before his exit
🔻 15% workforce reduction (15,000 jobs cut) announced in August
🔻 Struggled to compete in AI, while rivals like Nvidia surged ahead
🔻 Delayed Ohio chip factory opening and canceled Falcon Shores AI chips
A New Era with Lip-Bu Tan
Despite these hurdles, Tan’s leadership may signal a turning point. Intel has recently secured a $7.865 billion grant from the U.S. Department of Commerce under the CHIPS Act, with $2.2 billion already disbursed. The company also saw a major win with its Arc B580 graphics card, which sold out after receiving positive reviews.
As Tan takes charge, the industry is watching closely. Will Intel reclaim its position as a semiconductor leader? With AI-driven advancements, government-backed support, and a renewed focus on innovation, Intel’s next chapter is just beginning.
Table of Contents
Who is Intel’s new CEO?
Intel’s new CEO is Lip-Bu Tan, a semiconductor industry veteran who previously served as the CEO of Cadence Design Systems. He brings extensive experience in tech investment and leadership.
Why did Intel change its CEO?
The change in leadership comes after Pat Gelsinger’s retirement and a tumultuous period for Intel. The company faced setbacks in chip fabrication, missed opportunities in the AI race, and a significant drop in stock value. Lip-Bu Tan was appointed to steer the company through these challenges and refocus on innovation.
