Intel Corp. named Lip-Bu Tan as its next chief executive officer. The company said in a statement Wednesday that Tan, 65, will assume the role on March 18. He will also rejoin the board after stepping down in August 2024.
Intel shares surged 11% after hours on the news of Lip-Bu Tan’s CEO appointment, capping a 4.6% gain during the trading day. This dramatic rise follows a year of significant losses (down 54%).
Tan’s predecessor, Pat Gelsinger, was pushed out by the board for a perceived failure to rejuvenate Intel’s product lineup.
Intel, once a dominant force in the semiconductor industry, is now grappling with market-share declines, manufacturing challenges, and a sharp drop in earnings. The company is also weighed down by debt and recently had to cut approximately 15,000 jobs.
Despite these struggles, Intel remains one of the world’s largest chipmakers by revenue, generating over $50 billion in annual sales. Its processors power more than 70% of the world’s personal computers and server machines, and the company’s factories still account for a significant portion of global capacity for advanced manufacturing.
-With Reuters, Bloomberg inputs
