A C-suite long in making Intel (Intc).
Shares of the chip maker beaten together rose on Thursday by 12% premarket Trading when Intel Lip-Bu Tan announced as his permanent CEO.
Tan was the old CEO of Cadans Design Systems (CDNs) from 2009 to 2021. He left the board of Intel in August 2024 after serving two years, according to what a source tells me that they were collisions about how to position the company with now CEO and almost Intel Lifer Pat Gelsinger.
The source said that Tan was interviewed for the CEO roll of Intel at the same time with Gelsinger. Gelsinger eventually got the performance in 2021, but had to play nice by agreeing to put Tan on the board. Tan often insisted on a better strategy for artificial intelligence to accept NVIDIA (NVDA) and faster decision -making in the notorious bureaucratic Intel.
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“If someone can save Intel, it’s lip, but it takes years and partners,” said a source who knows that Tan told me. It is unlikely that Tan will split the ailing foundry arm of Intel in the short term, but he could quickly move to inject cash in the company through a rumor partnership with Taiwan Semiconductor (TSM) and the US government.
More redundancies can also be possible under Tan, the source added.
Intel refused to make Tan available for an interview.
Next: March 12 at 16:00:01 pm Edt
Certainly, Tan has a mess in the hands of the iconic American tech giant.
Gelsinger led aggressive efforts to reverse the American chip maker for more than three years. He cut thousands of jobs, improved costs, secure chips act financing, built chip -casting and promised fast AI chips that could compete with Nvidia and AMD (AMD).
At the beginning of December he was fired in the midst of missed goals and a cash drain at the foundry company.
Intel’s turnover of the fourth quarter of a year after year 7% fell to $ 14.3 billion. The net income fell 76%.
The company predicts that it will only break on the profit line this year.
This is what Wall Street says about the new choice of Intel’s new executive team.
“We are encouraged by this appointment, given the term of office of LIP-BU TAN and Track Record of creating shareholders’ value as CEO of Cadans and earlier experience as an Intel board member. Given the multitude of challenges that Intel is currently confronted, we are maintaining our sector weight to hear more to it.”
“After having followed the transformative impact of Mr Tan on Cadans Design Systems during his eleven-year term as CEO at that company, as well as many successful results with regard to investments in the Semiconductor Universe, we believe that Mr Tan Tan is unique qualified to try a restart of Intel.