Intel CEO
New Intel CEO Lip-Bu Tan Credit: Intel
Intel introduced Lip-Bu Tan as its new CEO and highlighted his “proven track record of creating shareholder value.” The message from Intel board chair Frank Yeary did a fine job of covering the successes Cadence Design Systems saw under his leadership. It also pointed out that Tan, being a former board member, already understands Intel from the inside. But it’s Tan’s message to Intel employees that caught our attention, and we’re sure it caught theirs.
“Under my leadership, Intel will be an engineering-focused company,” Tan said in a statement. “We will push ourselves to develop the best products, listen intently to our customers, and hold ourselves accountable to the commitments we make so that we build trust.”
That statement has us wondering about the fate of Intel’s foundry business. Intel’s former CEO, Pat Gelsinger, drove Intel’s “five nodes in four years” plan, investing huge sums of money into Intel’s chip development and production capabilities. There has been plenty of speculation about Intel Foundry’s future, with TSMC, among others, appearing to show some interest in it. Just a few years ago, the prospect of breaking up the chip giant would have been unimaginable.
Intel fab tool
Intel fab tool
Credit: Intel
Tan also made clear that Intel will be taking a good, hard look at itself, suggesting that changes could be in the future. Tan also indicated that he’s not afraid to take risks.
“We cannot take anything for granted, and we will do regular deep dives to assess our progress,” Tan said. “In areas where we have momentum, we need to double down and extend our advantage. 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 new ways to pick up the pace.”
The new Intel CEO focused almost all of his statement on laying out his vision for Intel's turnaround. He touched on the theme of teamwork multiple times and promised to “empower leaders to take ownership and actions to move our business forward."
Only at the end of the statement did Tan give a nod to shareholders, tying Intel’s “renewed focus on customers” to delivering for them.
But shareholders appeared pleased with Intel’s leadership choice. As Reuters noted, Intel shares surged on the news of Tan’s appointment.