The appointment, efficient March 18, comes three months after Intel ousted CEO and firm veteran Pat Gelsinger, whose pricey and impressive plan to show the corporate round was faltering and sapping investor confidence.
Tan, a former Intel board member, had been seen as a CEO contender because of his deep expertise within the chip business in addition to a longtime expertise investor in promising startups. He was approached by Intel’s board in December to gauge his curiosity in taking on the job, Reuters had reported.Â
“Together, we are going to work onerous to revive Intel’s place as a world-class merchandise firm, set up ourselves as a world-class foundry and delight our clients like by no means earlier than,” Tan stated in a letter to Intel workers on Wednesday.
Intel shares surged 12 p.c in prolonged buying and selling on Wednesday, and analysts welcomed the transfer that they stated was more likely to deliver some stability to the chipmaker. The firm’s inventory had declined 60 p.c in 2024.
Intel is present process a historic transition because it makes an attempt to emerge from one in every of its bleakest durations.
While struggling to money in on a increase in funding in superior AI chips that has fired up the fortunes of market chief Nvidia and different chipmakers, the corporate is spending closely to turn into a contract producer of chips for different firms, main some buyers to fret about stress on its money flows.
Media experiences up to now two months stated chip rivals together with Broadcom have been evaluating Intel’s chip design and advertising enterprise, whereas TSMC has individually studied controlling some or all of Intel’s chip crops, doubtlessly as a part of an investor consortium or different construction.
Reuters reported on Tuesday that TSMC had approached a few of Intel’s greatest potential manufacturing clients about forming a three way partnership to function Intel’s factories, after US President Donald Trump’s administration requested TSMC to assist flip across the troubled chipmaker.
“This (Tan’s appointment) is welcome information,” stated Jack E. Gold, analyst and president of J. Gold Associates, which covers the chip business.
Tan has an “intrinsic understanding of the semiconductor business, each from a product design facet in addition to the wants of enabling chip manufacturing – an space that Intel Foundry wants assist in making their instruments extra user-friendly and accessible for potential clients,” he stated.
Gold and different analysts agreed that Tan’s messaging regarded like he wished to maintain the corporate collectively, although they stated any transformation of the chipmaker would take years and require buyers to be affected person.
Long Admired
“Intel is an organization I’ve lengthy admired,” Tan stated in his letter on Wednesday, expressing confidence in turning the enterprise round.
Tan, 65, is a Malaysian-born govt who grew up in Singapore and holds levels in physics, nuclear engineering and enterprise administration.
He served as CEO of Intel provider and chip-design software program Cadence Design Systems from 2009 to 2021. During his time period, the corporate’s income and inventory surged.
Tan left Intel’s board final yr over disagreements on the right way to flip across the firm. He grew annoyed by the corporate’s giant workforce, its method to contract manufacturing and Intel’s risk-averse and bureaucratic tradition, Reuters beforehand reported.
Tan will rejoin the board, Intel stated.
Tan “brings stability and expertise to a task that wants somebody of his caliber, which is why I consider the corporate will probably keep the course together with his appointment and proceed to develop foundry and product,” stated Anshel Sag, principal analyst at Moor Insights & Strategy.
Tan’s appointment comes as Trump pushes for extra manufacturing within the nation, threatening tariffs on imports which have roiled international markets for weeks.
While Trump has made no direct remark about Intel publicly, he has stated that Asian international locations together with Taiwan have snatched away the United States’ edge in chipmaking.
Earlier this month, Intel rival TSMC stated at a press occasion with Trump that it plans to make a contemporary $100 billion (roughly Rs. 8,70,721 crore) funding within the US that entails constructing 5 extra chip amenities.
Trump, although, is making an attempt to kill a 2022 bipartisan legislation to provide $52.7 billion (roughly Rs. 4,58,835 crore) in subsidies for chips, beneath which Intel has obtained grants.
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