Wrestling chip maker Intel has hired former board member and semiconductor industry veteran Lip-Bu Tan as the last in a succession of CEOs to try to define a dominant company that helped Silicon Valley.
Tan, 65, will take over the discouraging job this Tuesday, more than three months after Intel’s previous CEO, Pat Gelsinger, abrupt retirement was amid a in -depth decline that caused mass dismissals and raised questions about the ability of the chip maker to survive as an independent company.
This will not be a semiconductor company for the first time, nor his first association with Intel. He spent more than a decade as CEO of Cadans Design Systems, which makes software that helps to design processors, and came to Intel’s Board of Directors in 2022 before he resigned last August. Tan will join the Intel board again, in addition to becoming CEO.
“LIP-BU is an exceptional leader whose expertise in the field of technology industry, deep relationships in the product and the foundry ecosystems and proven state record in creating shareholders’ value exactly what Intel needs in the next CEO,” said Intel’s interim executive chairman Frank Yeary.
Intel has been led by Interim CO CEOs, David Zinter and Michelle Johnston Holthaus, since Gelsinger ran away from a job he undertook in February 2021.
Although Gelsinger arrived at Intel in the midst of high expectations, his term of office was a major disappointment when the share price of Intel decreased 60%, so that $ 160 billion in shareholders’ richness was wiped out. In the run -up to his departure last year, Intel of 17,500 of his employees – about 15% of his workforce – laid it up and suspended his dividend to save money on the way to an annual loss of $ 19 billion.
More recently, Intel delayed the opening of two new chip factories in Ohio to ensure that the projects are completed in a “financially responsible manner”. The project is supposed to be drawn from the $ 7.8 billion in financing that is reserved for Intel in the Chips Incentives program created during the administration of President Joe Biden.
It was the newest sign of need for Intel, a company in Santa Clara, California, that helped Silicon Valley launching by developing the microprocessors that made the personal computer revolution possible under the leadership of his CEO at the time, Andy Grove.
But as leadership changed, Intel missed the technological shift to mobile computer use by Apple’s release of the iPhone from 2007, and it is left behind more agile chip makers. The problems of Intel have increased since the arrival of artificial intelligence-a flowering field where the chips made by once smaller rival Nvidia have become the most popular raw material in Tech.
