Intel has appointed a new executive president, while the giant chip maker tries to recover from tough years in which the former industry leader stayed behind most of his rivals.
The company announced on Wednesday (12) that it appointed the former investor in technology and executive of the semiconductor industry Lip-BU TAN as executive president, after former CEO PAT Gelsinger resigned in December.
After the announcement, Intel’s shares jumped almost 13% at the end of the work. At the closing of Wednesday, the company’s shares fell more than 54%, signaling investor concerns about the company’s future.
Tan has spent more than a decade as a CEO of Technology Design Cadence Design Systems, where he led a “company reinvention”, according to Intel. He is also a managing partner of Walden Catalyst Ventures, which invests in semiconductors, IA, cloud and other advanced technologies.
“Lip-BU is an exceptional leader whose expertise in the technology industry, deep relationships in all product ecosystems and proven proven value creation for shareholders are exactly what Intel needs in their next CEO,” Intel’s interim executive Frank Yeary said in a statement. Yeary will again be the independent president of the board when Tan assumes command on March 18.
Tan will have a huge task in hand when he assumes Intel, who has largely lost revolutions to mobile computing and AI technology – giving rivals to rivals like Qualcomm and Nvidia. Rumors of an acquisition have circulated in recent months as Intel’s future seemed uncertain.
And Tan will have the responsibility to prove that it can be a more efficient CEO than Gelsinger, the company’s veteran who was seen as a kind of prodigal son when he took office in 2021, but failed to reverse the company’s crisis.
In August, the company said it would fired 15% of its team as part of an effort to cut $ 10 billion into costs. And in November, Intel lost its place at Dow Jones Industrial Averag to Nvidia, marking the end of a 25 -year race, since it was one of the first two technology companies included in the Blue Chip index.
The effort to revitalize the company, for a long time a pillar of the American technology industry, occurs while President Donald Trump, as well as his predecessor Joe Biden, seeks to encourage investment in the manufacture of chip in the US.
Advanced semiconductor manufacturing is seen as an important issue for national security as chips feed numerous technological products, iPhones and weapon AI systems and medical devices.
Taiwan Semiconductor Manufacturing Company announced earlier this month that it will invest at least $ 100 billion to expand its US operations.
