Intel on Wednesday nominated former board members and chip industry veteran lip-bo tan as his CEO and indicated to struggle, but the chipmekar was unlikely to divide its chip-design and manufacturing operations. The effective appointment on March 18 comes three months after the Intel was taken out of the CEO and the company’s experienced Pat Gaileser, whose expensive and ambitious plans to divert the company were staggering and reduced the investor’s confidence.

Tan, a former member of the Intel Board, was seen as a CEO contender for a long -time technology investor in promising startups with his deep experience in the chip industry. In December, Intel was approached by the board to estimate his interest in taking jobs, the Reuters reported. Tan said in a letter to Intel’s employees on Wednesday, “Together, we will work hard to restore Intel’s position as a world -class product company, establish ourselves as a world class foundry and will please our customers as before.”

Intel’s shares grew by 12 percent in extended trading on Wednesday, and analysts welcomed the move that he said there was a possibility of bringing some stability for the chipmaker. In 2024, the company’s stock fell by 60 percent. Intel is undergoing a historical infection as it tries to emerge from its most blurred time.

Struggling for cash on a boom in investing in advanced AI chips, which has removed the fate of market leaders Nvidia and other chipmakers, the company is spending heavily to become a contract manufacturer of chips for other companies, making some investors concern about pressure on their cash flow.

Media reports in the last two months stated that chip rival, including broadcom, was evaluating the chip design and marketing business of Intel, while TSMC has studied separately to control some or all Intel’s chip plants, possibly an investor as part of the consortium or other structure. Roots On Tuesday, TSMC had approached some of Intel’s biggest potential construction customers about creating a joint venture to operate Intel’s factories, when the administration of US President Donald Trump requested to help walking around a chipmekar disturbed by TSMC.

“This (appointment of Tan) is welcome news,” Jack E Gold, Analyst and J. Gold Associates said, which covers the chip industry.

Tan has “an internal understanding of the semiconductor industry, both with a product design aspect – with the requirements of enabling chip manufacturing – an area that Intel Foundry needs to help the Intel Foundry to make its equipment more user friendly and more accessible to potential customers.”

Long -term praise

Tan said in his letter on Wednesday, “Intel is a company that I have praised for a long time.” The 65-year-old Tan, a Malaysian-birth executive, is a grew up in Singapore and holds degrees in physics, nuclear engineering and business administration. He served as an Intel supplier and CEO of the Chip-Design Software Table Design System from 2009 to 2021. During its tenure, the company’s revenue and stock increased.
Tan left Intel’s board on disagreement to turn around the company last year. He was disappointed with the company’s large workforce, contract manufacturing and intelligent risk-explored and bureaucracy culture, Roots The report was first reported.

Tan will re -connect the board, Intel said.

Tan “brings stability and experience to a role that requires any of its caliber, which is why the company believes that the company will probably be courses with its appointment and will continue to develop foundry and products,” said Ansel Sag, lead analyst of Moore Insights and Strategy.

As the appointment of Tan, Trump pushes for more manufacturing in the country, threatening tariffs on imports that roam the global markets for weeks.
While Trump has not publicly made any direct comment about Intel, he has said that Asian countries including Taiwan have taken away the banks of the United States in chipmaking.

Earlier this month, Intel rival TSMC stated at a press event with Trump that she plans to invest $ 100 billion in the US which includes five additional chip facilities.

Trump, however, is trying to kill the 2022 biennial law to give $ 52.7 billion to subsidy for chips, under which Intel has received grants.