Intel hires former board member as new CEO in struggling chipmaker's latest comeback attempt

Core Viewpoint - Intel has appointed Lip-Bu Tan as the new CEO in an effort to revitalize the struggling chipmaker following the abrupt retirement of former CEO Pat Gelsinger amid significant operational challenges and layoffs [2][5]. Company Overview - Intel has faced a severe downturn, with a stock price decline of 60% during Gelsinger's tenure, resulting in a loss of $160 billion in shareholder wealth [5]. - The company laid off 17,500 employees, approximately 15% of its workforce, and suspended its dividend to manage financial losses, which totaled $19 billion annually [5]. Leadership Changes - Lip-Bu Tan, a semiconductor industry veteran and former Intel board member, will take over as CEO, marking a return to the company after previously serving on its board [3][4]. - Tan's leadership is expected to leverage his extensive industry relationships and experience to create shareholder value [4]. Recent Developments - Intel has delayed the opening of two new chip factories in Ohio to ensure financial responsibility, utilizing $7.8 billion from the CHIPS Incentives Program [6]. - The company has struggled to keep pace with technological advancements, particularly in mobile computing and artificial intelligence, where competitors like Nvidia have gained significant market traction [8]. Market Position - Nvidia's market value has surged to $2.8 trillion, contrasting sharply with Intel's current valuation of $90 billion [9]. - Following the announcement of Tan's hiring, Intel's stock price increased by over 10%, indicating investor optimism regarding the potential for a turnaround under his leadership [9]. Past Achievements - Tan previously served as CEO of Cadence Design Systems, where the company's stock price increased 44-fold during his tenure [9]. - He was awarded the Semiconductor Industry Association's 2022 Robert Noyce Award, recognizing his contributions to the industry [10].