Following the announcement, Intel shares jumped by 13%. However, the company has faced a 54% decline since Gelsinger's appointment.
Tan served as the CEO of Cadence Design Systems for more than a decade, where he led a major turnaround of the company. He is currently a managing partner at Walden Catalyst Ventures, which invests in semiconductor technologies, AI, and cloud solutions.
Tan faces a challenging task: Intel failed to effectively develop mobile technologies and AI, ceding leadership to Qualcomm and NVIDIA. In recent months, there have been rumors of a potential takeover of the company, but now Tan must prove he is capable of returning Intel to a growth trajectory.
Additionally, in August, Intel announced layoffs of 15% of its workforce to cut costs by $10 billion. In November, the company lost its spot in the Dow Jones index, losing out to NVIDIA.
Tan's appointment comes at a time when the US is actively supporting the development of domestic chip manufacturing, which is critical for national security.
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Cover author: CNN. Cover source: CNN