Intel has named Lip-Bu Tan as its new CEO, as the chip manufacturer seeks to return to profitability.
Tan, previously CEO of chip design services company Cadence, will take over the role on 18 March. Previous CEO Pat Gelsinger exited Intel in December, with the board of directors dissatisfied with his plans to revive the business.
“Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. And, together, I’m confident we can turn our business around,” said Tan in a letter to employees.
“Under my leadership, Intel will be an engineering-focused company. We will push ourselves to develop the best products, listen intently to our customers and hold ourselves accountable to the commitments we make so that we build trust.”
Interim CEOs David Zinsner and Michelle Johnston Holthaus will remain with Intel as chief financial officer and CEO of Intel Products.
Tan was a member of Intel’s board from 2022 to 2024, but departed in August after reportedly disagreeing with Gelsinger’s strategy. He will rejoin the board with his appointment as CEO, the company said.
Intel has seen revenue decline for three consecutive quarters. Last quarter, the company reported a 7% year-over-year drop in revenue, and a net loss of US$126 million.
Taiwanese chip manufacturer TSMC has reportedly been discussing a joint venture with Nvidia, AMD, Broadcom, and Qualcomm that would operate Intel’s factories.
A deal would see TSMC take a stake of less than 50% in Intel’s foundry division to oversee its chip production.
Intel’s (NASDAQ: INTC) share price closed at US$20.68, before jumping to $22.88 in after-hours trading. Its previous close was at $19.78, and its market capitalisation is $89.54 billion.
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