Intel Corp. has roped in Lip-Bu Tan as its next CEO, giving one of the most challenging positions in the chip industry to a former board member and semiconductor veteran.
According to the company, Tan, 65, will take over the position on March 18. He will also return to the board after leaving in August 2024.
Tan, the former CEO of Cadence Design Systems Inc., has been given the responsibility of turning around a trailblazing chipmaker that has fallen behind in the industry. After dominating the semiconductor industry for decades, Intel is currently facing manufacturing problems, a sharp drop in earnings, and losses in market dominance. In addition, it has debt and recently had to lay off roughly 15,000 employees.
Tan stated in a memo to Intel staff that he is sure he can bring the company around.
Asian giants TSMC and Samsung, who control the made-to-order semiconductor market, have overtaken Intel, one of Silicon Valley's most recognizable corporations.
The growth of graphics chip manufacturer Nvidia as the leading supplier of AI chips worldwide also took the firm by surprise.
Competing computer businesses are vying for Nvidia's chips, which are the company's strongest suit.
As AI becomes more popular, Intel's specialty has been chips utilized in conventional computing processes.
Gelsinger's sudden exit occurred just months after the company announced plans to halt or postpone building on a number of chipmaking plants and remove over 15,000 positions as part of a drastic cost-cutting strategy.
According to the Intel board, Tan overhauled Cadence Design Systems and more than doubled its revenue during his tenure as chief from 2009 to 2021.
In an attempt to return semiconductor manufacturing to the United States, the government of former US President Joe Biden last year finalized a $7.9 billion grant to Intel.
However, Intel stated in February that it is approaching the $28 billion project with caution, extending the deadline for finishing two new fabrication plants in Ohio.
Due to lower-than-expected demand, Intel announced late last year that it was postponing plans to construct two massive chip-making facilities in Germany and Poland.
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Additionally, Intel announced at the time that it would reduce its Malaysian initiatives.