Computer science Chip veteran to lead Intel out of the crisis
Intel has a new boss: Lip-Bu Tan is to take over the reins on March 18, as the company announced. He was a member of the Intel Board of Directors until August, but then withdrew - according to the media after differences of opinion with the then CEO Pat Gelsinger.
12.03.2025, 22:23
13.03.2025, 02:48
SDA
Gelsinger in turn threw in the towel in December. His ambitious plans to lead the semiconductor pioneer out of the crisis only made slow progress.
The 65-year-old Lip-Bu Tan made a name for himself as head of the chip company Cadence Design Systems, among other things. Intel shares rose by over eleven percent at times in after-hours trading following his appointment.
Years of problems
Intel once dominated the semiconductor market, but has been struggling with problems for years. Graphics card specialist Nvidia has taken a leading position, particularly in the business with chips for artificial intelligence. Intel is also under greater pressure in its traditional business with PC processors and chips for data centers.
Part of Gelsinger's strategy was to establish Intel as a contract manufacturer for other chip developers. To this end, he aimed to invest billions in new plants. However, the construction of a European factory in Magdeburg, Germany, was postponed for two years. A major project in the USA has also been delayed by several years.
Expert: austerity measures likely to continue
In an initial assessment, well-known industry analyst Patrick Moorhead pointed out that Lip-Bu Tan has experience in both chip design and production plants. He now has to decide quickly whether the group wants to keep its factories. Meanwhile, Moorhead predicted that there would be further cost reductions.
In an email to employees, Lip-Bu Tan emphasized that Intel still plays a key role in the technology ecosystem in the USA and internationally. He believes in the opportunity to reposition the company. "That doesn't mean it will be easy. It won't," he wrote. His philosophy is to remain humble, work hard and inspire customers. And if you follow these principles, good things happen.
