Can Lip-Bu Tan help Intel regain its position?
According to the latest announcement from Intel, Lip-Bu Tan, a veteran in the semiconductor industry, has been officially appointed to the position of CEO, effective from March 18. This decision was made after Pat Gelsinger left the leadership position due to failing to meet expectations in restructuring the company.
In August 2024, Mr. Tan resigned from Intel’s board of directors due to disagreements over the company’s restructuring strategy and risk management culture. He was unhappy with the way Intel operated, especially the burdensome administrative regulations that hindered innovation in its desktop and server divisions.
Lip-Bu Tan is a seasoned entrepreneur in the semiconductor industry, having led several technology companies and having a great influence in the chip manufacturing sector.
Intel shares rose 12% in after-hours trading following the announcement. Analysts welcomed the appointment, saying that Tan’s experience in both chip design and manufacturing would help steer Intel in the right direction. But they warned that restructuring a company as large as Intel would take years and require patience from investors.
Intel's challenge in the AI chip race
Intel has struggled to capitalize on the wave of AI chip investment while rival Nvidia has surged. The company has also been pouring money into contract manufacturing, a risky strategy in the face of rivals like TSMC and Samsung. Some reports say companies like Broadcom and TSMC have considered taking over some or all of Intel’s chip business.
Intel is one of the world's leading semiconductor companies, owning an advanced chip manufacturing chain but facing increasing competitive pressure.
PHOTO: CNET SCREENSHOT
Mr. Tan’s appointment comes as the U.S. administration pushes for domestic chip production and threatens tariffs on imports. While it has not directly mentioned Intel, the U.S. government has repeatedly criticized the U.S. for losing ground in the semiconductor industry to Asian countries.
TSMC recently announced plans to invest an additional $100 billion to build five new chip factories in the U.S. Meanwhile, Intel is one of the companies that received support from the U.S. government's $52.7 billion subsidy package to boost the domestic chip industry.
Intel spends $100 billion for the throne of the semiconductor industry
Lip-Bu Tan will now face a number of major challenges as he leads Intel, from reviving the business to competing with major rivals to maintaining the balance between chip manufacturing and design. His decision to keep the company’s operating structure intact suggests he wants to stabilize the situation rather than make divisive changes. However, whether this strategy will succeed remains a big question mark in the context of the volatile chip industry.
Source: https://thanhnien.vn/intel-dua-lip-bu-tan-tro-lai-voi-vai-tro-ceo-trong-giai-doan-tai-co-cau-185250313093253718.htm
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