Intel Appoints New CEO Amid Major Transitions

Intel welcomes new CEO Lip-Bu Tan

Semiconductor giant Intel has appointed Lip-Bu Tan as its new CEO. Tan’s appointment comes after former CEO Pat Gelsinger retired and left the company. Prior to Tan’s arrival, the company’s Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus were serving as co-CEOs.

Intel Right Now

Lip-Bu Tan’s arrival at Intel comes at a time when the company is facing many challenges. During Gelsinger’s tenure, Intel made many mistakes in chip manufacturing and also lagged far behind in the smartphone revolution. During this time, there were many major changes in the chip industry, such as AMD’s purchase of Xilinx for $35 billion and Analog Devices’ purchase of Maxim for $21 billion.

Major plans under Gelsinger’s leadership

Gelsinger took over Intel in 2021 and laid out a plan to modernize the company, called IDM (Integrated Device Manufacturing). Under the plan, $20 billion was invested in two new chip manufacturing facilities in Arizona, with the aim of boosting chip production in the US. In 2022, the company introduced a three-pronged approach under the IDM plan, which included its own fabs, third-party manufacturers, and Intel’s foundry services.

Intel failed acquisition attempt

The company had planned to acquire Tower Semiconductor for $5.4 billion as part of its IDM plan, but the deal was canceled in the summer of 2023 due to regulatory problems. Following this failure, Intel made efforts to turn its chip foundry division into an independent subsidiary.

Intel recent challenges and changes

Before Gelsinger’s retirement, the company was going through many troubles. The company’s stock price fell by nearly 50% from the beginning of 2024 to December. After disappointing results in the second quarter, Intel announced a 15% reduction in its workforce, laying off about 15,000 employees. Gelsinger had then said that the company was unable to take advantage of the AI ​​boom and lagged behind in this area.

Positive steps under Tan’s leadership

After Tan took over the leadership, Intel signed an agreement with the US Department of Commerce to receive a grant of $7.865 billion for domestic semiconductor manufacturing. Of this grant amount, $2.2 billion has already been received by the company. Apart from this, Intel has also given positive signs with the success of its Arc B580 graphics card, which has seen a surge in sales after good reviews.

Under Tan’s leadership, the company is ready to face new challenges and there are possibilities of improvement in the future.

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