Intel Corporation (NASDAQ: INTC) shares surged over 10% in pre-market trading Thursday. The rally came after the U.S. chipmaker tapped former board member and industry veteran Lip-Bu Tan as its new CEO.
Intel confirmed Tan will take over as CEO effective March 18. This comes more than three months after the company parted ways with its previous CEO, Pat Gelsinger. Reuters had reported that Intel’s board approached Tan in December to see if he was interested in the top job.
With over 20 years in semiconductors and software, Tan is a familiar name in the tech world. He previously led Cadence Design Systems (NASDAQ: CDNS) as CEO from 2009 to 2021. Under his leadership, Cadence doubled its revenue, expanded its operating margins, and achieved a stock price increase of over 3,200%.
Interim executive chair Frank Yeary welcomed the new appointment, saying,
“Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO.”
Tan, who resigned from the Intel Corporation (NASDAQ: INTC) board in August 2024, will also reclaim his director seat.
In a letter to employees, Tan said,
“Under my leadership, Intel will be an engineering-focused company. We will push ourselves to develop the best products, listen intently to our customers, and hold ourselves accountable to the commitments we make so that we build trust.”
With Tan stepping in, Frank Yeary will revert to his position as independent board chair. Interim co-CEO David Zinsner will continue as executive vice president and chief financial officer. The other interim co-CEO, Michelle Johnston Holthaus, is expected to remain CEO of Intel Products.
