Intel, a fallen Silicon Valley icon attempting to revive its status as America’s most outstanding semiconductor firm, has named Lip-Bu Tan, an skilled enterprise and expertise chief, as its new chief govt.
Mr. Tan, 65, shall be liable for reviving the fortunes of a chip-making firm that has fallen from grace. As soon as one of many best-known names in expertise, the semiconductor large has been hobbled in recent times by its struggles to innovate and failure to assert a share of the marketplace for chips utilized in smartphones and synthetic intelligence.
Intel’s issues turned so pronounced that final yr it ousted its chief executive, Patrick Gelsinger, and cut 15,000 jobs. The corporate’s share value has fallen 54 p.c over the previous yr.
The corporate’s woes have alarmed the U.S. authorities, the place lawmakers have been attempting to rebuild the chips business after the pandemic created a worldwide scarcity that pressured U.S. auto factories to shutter. Below the CHIPS Act, a bipartisan regulation, Intel was awarded $8.5 billion in federal funding to construct vegetation in Arizona, Ohio and New Mexico. However its enterprise challenges have raised questions on its capacity to finish these tasks.
Earlier this yr, the Trump administration started assembly with Intel’s management about how you can restore its enterprise, one of many nation’s final in superior semiconductor manufacturing. One proposal was to have its rival, Taiwan Semiconductor Manufacturing Firm, the world’s largest chipmaker, assume operations for Intel’s ailing manufacturing enterprise. Frank Yeary, Intel’s chairman, was open to that concept, The New York Times has previously reported.
Now, will probably be as much as Mr. Tan to direct Intel’s future. The corporate is among the final on this planet that also each designs and manufactures semiconductors. Its former board members and others in the industry have been calling for the corporate to separate these companies aside.
Buyers reacted positively to Mr. Tan’s appointment, inflicting Intel’s inventory value to leap greater than 11 p.c in aftermarket buying and selling.
Mr. Tan has an extended historical past as an investor in Silicon Valley, one in every of few who stored placing cash into semiconductor and tech {hardware} start-ups when most different enterprise capitalists selected much less dangerous investments in software program and web companies. Whereas operating the enterprise capital agency Walden Worldwide, he served a prolonged stint as chief govt of Cadence Design Techniques, one of many two dominant makers of software program utilized in designing chips.
He’s broadly credited with turning round that firm, which now boasts a market worth of greater than $65 billion.
Mr. Tan retains an energetic position in lots of small and midsize tech {hardware} firms. He was named govt chairman final Might of SambaNova Techniques, an organization competing with Nvidia, the world’s dominant developer of synthetic intelligence chips. He’s additionally chairman of Credo Expertise Group Holding, a maker of communications chips.
In recent times, Mr. Tan has confronted criticism for his investments in Chinese language synthetic intelligence and semiconductor firms. A Congressional committee specializing in China wrote him a letter in 2023 requesting details about Walden Worldwide’s investments in firms which might be on a authorities blacklist as a result of they’ve been labeled a threat to nationwide safety.
