Intel (Intc) announced that the LIP-BU Tan mentions as his new CEO. The veteran of the chip industry, which previously helped Cadans Design Systems, takes over from interim-CO CEOs David Zinner and Michelle Johnston Holthaus. The duo succeeded the former CEO Pat Gelsinger, which was dropped off by the Intel board at the end of 2024.
Shares of Intel climbed more than 11% after the announcement after the announcement.
The news comes on the same day as a Reuters report stating that a consortium of companies led by TSMC (TSM) and Including NVIDIA (NVDA) and Broadcom (AVGO) is in conversation to take over the production company of Intel.
Tan is no stranger to Intel. The new CEO initially served on the company’s board in 2022, but left the chip giant in 2024 after it was reportedly disagreed with Gelsinger about the company’s turnaround plan, including the external contract Semiconductor manufacturing activities, according to Reuters.
“I am honored to become a member of Intel as CEO,” Tan said in a statement. “I have enormous respect and admiration for this iconic company, and I see significant opportunities to make our company again in ways that our customers serve better and to create value for our shareholders.”
Tan takes over Intel in the middle of one of the darkest eras in the history of the company. The chip maker has lost his lead in process production on rival chip Builder TSMC and has given his chance to dominate in the AI room to Nvidia.
Shares of Intel have fallen 54% in the past year, because the turnover of the company has shrunk from its pandemic highlights. It is now confronted with increased competition from old Nemesis AMD (AMD) and a renewed effort from Qualcomm (QCOM) to break into the PC chip space, which threatens Intel’s largest money maker.
The semiconductor giant has also received billions of dollars through the Chips Act to help pay for new production facilities in the US, including a huge campus in Ohio. But Intel says that part of the project has been delayed and will only be completed in 2030. It was initially planned to open in 2025.
E -Mail Daniel Howley at dhowley@yahoofinance.com. Follow him on X @DanielHowley.
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