Intel Corporation (NASDAQ:INTC) surged 11.6% during the pre-market trading session on Thursday after the company announced that tech industry veteran, Lip-Bu Tan, is set to take the helm as the new CEO.
What Happened: According to an official announcement on Thursday, the board of directors has selected Lip-Bu Tan as the new CEO effective from March 18. Tan will succeed Interim Co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus. He will also return to the Intel board of directors, a position he vacated in August 2024.
Zinsner will maintain his role as the executive vice president and chief financial officer, while Holthaus will continue as the CEO of Intel Products. Frank D. Yeary, who acted as the interim executive chair of the board during the CEO search, will resume his position as the independent chair of the board once Tan steps into his new role.
Malaysia-born Tan has previously served as the CEO of Cadence Design Systems (NASDAQ:CDNS) for over a decade. Tan is the newest to join the list of non-U.S.-born executives stepping into leadership roles at the country’s top chip companies.
Why It Matters: This leadership change comes at a crucial time for Intel, a leading player in the semiconductor industry. Intel’s shares have declined nearly 52% over the past year. For decades, the company designed and manufactured its own chips internally, but it eventually fell behind competitors in recent times.
Tan stated on the company website "In areas where we have momentum, we need to double down and extend our advantage," He also said, "In areas where we are behind the competition, we need to take calculated risks to disrupt and leapfrog. And in areas where our progress has been slower than expected, we need to find ways to pick up the pace.”
Tan’s appointment as CEO was met with a positive market response, as Intel’s stock rallied in after-hours trading following the announcement.
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