Intel's new CEO Lip-Bu Tan paid a visit to the company's HQ in Santa Clara a few days ago, and here is what to expect from him and Intel's future under his vision.
Intel's Lip-Bu Tan Is Committed Towards A Strong Company Future, But The Initial Part of His Tenure Is Expected To Be Gloomy
Well, Team Blue's former CEO, Pat Gelsinger, did witness an abrupt end to his tenure since, at this time, not only were all business segments seeing a massive decline, but Intel was stuck in a corner, with apparently no way out. Team Blue also failed to capitalize on the AI hype early on, which allowed competitors like AMD and NVIDIA to progress massively. However, with Intel's new CEO Lip-Bu Tan in the office, there's once again optimism towards the company's future, but it won't be easy to put the firm back to mainstream levels.
Welcome to Intel, Lip-Bu Tan! 🙌
“I’m excited to make an impact and work with employees to really drive to the next era of Intel,” said Intel’s new CEO, who spent his first day at HQ in Santa Clara meeting with employees and customers. https://t.co/Zu1KOhSdY2 pic.twitter.com/tbLe7swQR1
— Intel News (@intelnews) March 19, 2025
For those unaware of who Intel's new CEO is, Lip-Bu Tan previously worked as the CEO of Cadence Design Systems from 2009 to 2021, where he upscaled the company massively, doubling the revenue over his tenure. Along with this, he is an expert at knowing about different markets, particularly China, which means that Intel has the opportunity to tap into one of the world's biggest AI markets, given that their new CEO has decided to capitalize on this segment.
Upon his arrival, Lip-Bu Tan clearly indicated that the IFS wasn't going anywhere, refuting rumors of a business spin-off. In his first company letter, the new Intel CEO stated that the firm is undergoing a massive transition, which will be "one of the most pivotal moments in its history." He wants the IFS to take a leading position in the semiconductor industry, and his arrival comes at a time when Intel is racing to deliver with its 18A chip manufacturing process, aiming to win over customers with its foundry business to compete with TSMC.
Intel won't see "happy times" immediately since Tan is said to be implementing a massive restructuring initiative, which could potentially involve large-scale layoffs, although this isn't official. One area Tan could focus on is outsourcing Intel's semiconductor orders to the likes of TSMC, that too in high volumes, given that the IFS doesn't manage to deliver. This is because, in Cadence, Tan was a huge fan of TSMC and had close relations with the Taiwan giant. But, in-house foundry performance will be a priority.
Whether it marks the beginning of a new era or a downfall is yet to be seen; however, with Intel replacing its former CEO, the board of directors would likely not have an excuse for the underwhelming performance of Team Blue.
