Intel appoints new CEO to turn company around

Intel has appointed a new CEO in an effort to recover after several years of setbacks. Lip-Bu Tan, a well-known investor and semiconductor industry expert, will replace Pat Gelsinger, who stepped down in December 2024.

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