Intel Corporation on Wednesday announced the appointment of Lip-Bu Tan as chief executive officer, effective March 18. He succeeds interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus. Tan will also rejoin Intel’s board of directors after having stepped down in August 2024.
Zinsner will continue as executive vice president and chief financial officer, while Johnston Holthaus will remain CEO of Intel Products. Frank D. Yeary, who served as interim executive chair of the board during the CEO search, will return to his role as independent chair once Tan assumes leadership.
Tan brings over 20 years of semiconductor and software experience and has extensive relationships across Intel’s ecosystem. He previously served as CEO of Cadence Design Systems from 2009 to 2021, leading a transformation that saw the company more than double its revenue, expand operating margins, and achieve a stock price appreciation of over 3,200%.
He served on the Cadence board from 2004 through his tenure as executive chairman from 2021 to 2023. He is also a founding managing partner of Walden Catalyst Ventures and chairman of Walden International. Additionally, he holds board positions at Credo Technology Group and Schneider Electric.
The appointment comes after former CEO Pat Gelsinger, who was ousted last year, had set high expectations for Intel’s manufacturing and AI capabilities but failed to meet them, leading to financial and operational challenges. In its latest earnings report, Intel posted a revenue of $14.26 billion, surpassing the projected $13.81 billion. However, revenue declined 7% year-over-year, marking the third consecutive quarterly decline.
“Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO,” Yeary said. “We are delighted to have Lip-Bu as our CEO as we work to accelerate our turnaround and capitalize on the significant growth opportunities ahead.”
Tan expressed his enthusiasm for the role, stating that he sees significant opportunities to remake Intel’s business in ways that serve their customers better and create value for shareholders. “Intel has a powerful computing platform, a vast customer installed base, and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap,” he said.
Recently, media reports surfaced that there are ongoing negotiations involving TSMC, Nvidia, and Broadcom regarding a potential joint venture to acquire and operate Intel’s foundry division.
However, in his message to the employees, Tan said that under his leadership, Intel will be “an engineering-focused company.”
“In many ways, we are the founders of ‘The New Intel.’ We will learn from past mistakes, use setbacks to strengthen our resolve and choose action over distraction to reach our full potential,” said Tan.
“Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before. That’s what this moment demands of us as we remake Intel for the future,” he added.
Yeary acknowledged the contributions of Zinsner and Johnston Holthaus, saying, they’d continue the work to rebuild product leadership and advance our foundry strategy.
Tan holds a Bachelor of Science in physics from Nanyang Technological University in Singapore, a Master of Science in nuclear engineering from the Massachusetts Institute of Technology, and an MBA from the University of San Francisco. He received the Robert N. Noyce Award from the Semiconductor Industry Association in 2022.
