Lip-BU Tan is the new CEO of Intel and moths flat to accelerate chip giant restructuring

Intel Corporation named Lip-This Tan as your new CEO, officializing your possession for the March 18. The executive, who was once a member of the company’s board, returns to lead the semiconductor giant at a challenging moment, succeeding the CEOs Interinos David Zinsner and Michelle Johnston Holthaus.

The decision was well received by the market, and Intel’s shares have so far registered an up to 12% increase in the trading session after the announcement (At the time of this publication, it is about 11%).

Tan will have the mission of revitalizing the company, which has been facing financial difficulties and strong competition in the chip sector.

Consolidated experience in the technological sector

Before taking over Intel, Lip-BU Tan led Cadence Design Systems between 2009 and 2021, a company specializing in semiconductor design software. During its management, it transformed organizational culture, boosted innovation and more than doubled the company’s revenuesignificantly expanding its market value.

In addition to the executive experience, Tan is also a renowned investor. He founded and manages Walden Catalyst Ventures and presides over Walden International, focused on risk capital in the technological sector.

I am honored to take on the leadership of Intel. I see significant opportunities to transform the company and strengthen its position in the global chips market

Lip-This Tannew CEO of Intel

History and Academic Training

Born in Malaysia in 1959, Lip-BO Tan is Chinese ancestry and built his career in the United States. Graduated in Physics by Nanyang Technological University, in Singapore, and obtained a master’s degree in Nuclear engineering renowned Massachusetts Institute of Technology (MIT). Subsequently, he completed an MBA at the University of San Francisco.

Its early career was marked by work in technology investments. He played strategic roles at Eds Nuclear and Echo Energy before founding his risk capital company. His sagging for business earned him the title of “Pioneer of the Asian Capital Venture” for Forbes em 2001.

Challenges ahead at Intel

Tan’s appointment takes place in the midst of a turbulent phase to Intel, which has lost space for competitors such as Nvidia and AMD, especially in the artificial intelligence chips industry.

Under the management of its predecessor, Pat Gelsinger, the company tried to reinvent itself by investing in the manufacture of chips to third parties, but the high cost of this strategy generated concerns between investors.

Now, with tan in charge, the focus will be to change the market perception of this scenario:

We need to accelerate where we already have competitive advantage, to take calculated risks where we are behind and find ways to recover ground in the segments where our progress has been slow

Lip-This Tannew CEO of Intel

Presentation Letter (free translation)

A message from Lip-BO Tan, CEO of Intel

Team,

I am honored to be your next CEO.

Intel is a company that I always admired. As a child, I was captivated by the power of science, technology and engineering – and Intel’s innovation has been at the center of numerous discoveries that have changed the world over time.

However, as we all know, past achievements do not guarantee future success, especially in such a dynamic as ours. The pace of change remains accelerated, and the competition is intense. You understand this better than anyone and I know that the last years have been difficult for all of you and your teams.

One of the things you will learn about me is that I never let me down by the challenges. Throughout my career, they have always motivated me to solve complex problems. As I prepare to assume this function, I believe we have a unique opportunity to turn our company into one of the most decisive moments in its history.

This does not mean it will be easy. It won’t be. But I am here because I believe, with every fiber of my being, that we have what it takes to win. Intel plays an essential role in the technological ecosystem, both in the United States and in the world. And together, I have confidence that we can reverse our trajectory.

Under my leadership, Intel will be a engineering -focused company. Let’s challenge to develop the best products, listen carefully to our customers and commit to the promises we make, to build a solid base of trust.

I follow the philosophy: “Be humble. Work hard. Keep your customers.When we are anchored in these three fundamental principles, good things happen. This has been true in all the functions I have already performed, and this is how I will approach work ahead as your CEO.

We can not take anything as guaranteed, and we will do periodic revisions to evaluate our progress. In areas where we have competitive advantage, we need to double our efforts to expand this leadership. In the areas where we are behind the competition, we must take calculated risks to innovate and overcome the challenges. And in the areas where our progress has been slower than expected, we must find ways to accelerate the rhythm.

Most importantly, we need to work as a single team. One of the most valuable lessons I learned in my university time came from sport, not from the classroom. I learned to believe and trust my teammates, because I knew this was the safest way to victory – and there is nothing that I have hated more than losing. This is the mindset that we should all adopt to build a winning culture within Intel.

Now, more than ever, our customers tell us to work together and deliver the results they expect. Above all, this will be our number one priority. As your CEO, I will enable our leaders to assume responsibilities and take concrete actions to boost our business.

We have the opportunity to do something extraordinary together. In many ways, we are the founders of “Nova Intel”. Let’s learn from past mistakes, turn challenges into determination and choose action instead of distraction to achieve our true potential.

Together we will work hard to restore Intel’s position as a world -class product company, consolidate our performance as a reference foundry in the industry and delight our customers like never before. This is what this moment demands from us as we reinvent Intel for the future.

We also have the responsibility to deliver results to our shareholders – something I am also focused on and I believe is a natural consequence of our renewed commitment to customers.

I am grateful for the confidence that the board has deposited in me to lead this great company towards the future. I am proud to join this team and I am enthusiastic about the work we will do together.

I look forward to talking to you soon during our general company meeting.

With the best compliments,
Lip-This Tan

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Under new direction

Investors and analysts expect Tan’s arrival to represent a new breath to Intel. Frank Yeary, who acted as interim president during the transition, highlighted confidence in the executive. “Lip-BU has a proven history of value generation for shareholders and is prepared to lead the company to a new phase of growth”disse Yeary.

Tan’s appointment also marks Intel’s fourth exchange in just seven years, highlighting the difficulties faced by the company in maintaining stability in an industry in which it has become accustomed to leading.

However, your experience with innovation and business management in the semiconductor sector may be the differential necessary to replace Intel on the path of sustainable growth.

Source: Intel and CNBC