A long C suite for creating with Intel (INTC).
Beat-Up Chipmaker shares rose 12% in pre-market trading on Thursday as Intel announced Lip-Bu Tan as the permanent CEO.
Tan was the longtime CEO of Cadence Design Systems (CDNS) from 2009 to 2021. He left Intel’s board of directors in August 2024 after working for two years.
Sources said Tan was interviewed about the role of Intel CEO at the same time as Gelsinger. Gelsinger ultimately won the gig in 2021, but had to play well by agreeing to put Tan on the board. Tan frequently promoted better AI strategies to undertake NVIDIA (NVDA) and made faster decisions with the infamous bureaucratic Intel.
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“If anyone can save Inter, it’s lips, but it takes years and needs a partner,” a source who knows Tan told me. Thanh will likely spin off Intel’s disease casting division in the near future, but could quickly move to inject cash into the business through a rumoured partnership with Taiwan Semiconductors (TSM).
The sauce added that more layoffs could be possible even under the sunburn.
Intel refused to make Tan available for interviews.
Nearby: March 12th at 4:01pm EDT
Certainly, Tan is confused with the iconic American tech giant.
Gelsinger led an aggressive effort to turn the troubled US chipmakers around for over three years. He has promised high-speed AI chips that can cut thousands of jobs, improve costs, secure chip funding, build chip foundries, and compete with Nvidia and AMD (AMD).
He was fired in early December in the wake of missing targets, and cash discharges from the casting business.
Intel’s fourth quarter sales fell 7% year-on-year to $14.3 billion. Net profit fell 76%.
The company is predicting that it will break the profit line again this year.
This is what Wall Street is saying about Intel’s new executive team pick.
“Given Lipbu Tang’s tenure and track record, this appointment is encouraged by the fact that he has created shareholder value as CEO of Cadence and built his previous experience as a member of Intel’s board of directors. However, given the many challenges Intel is facing today, he maintains a weight rating for the sector, but we look forward to hearing more about Tan’s strategy to turn Intel.”
“Assistant to follow Tan’s transformational impact on the cadence design system, following many successful results related to investing in the entire semiconductor space during his 11-year tenure as CEO of the company, Tan believes he is uniquely qualified to try and restart Intel.
