Stephen Nellis and Max A. Cherney reported from San Francisco in this Reuters article. Lip-Bu Tan, a powerful yet relatively unknown figure in the technology industry, has taken on the challenging role of CEO at Intel, a renowned chipmaker facing significant operational issues. With Tan’s appointment announced on Wednesday, all eyes are now on his ability to steer Intel back to success.
Despite his low public profile, Tan enjoys a key advantage – his extensive connections within the industry. Many former and potential Intel customers have engaged with him through various business dealings, whether through startups he supported or software from companies he led. This network includes prominent figures like Lisa Su of Advanced Micro Devices and Jensen Huang of Nvidia, both leaders in AI chip technology who were reportedly approached to invest in Intel. Additionally, U.S. President Donald Trump is keen on Intel’s resurgence and will likely closely monitor Tan’s efforts.
Analyst Jack Gold believes Tan can leverage his experience and connections to drive Intel forward, urging the board to support his initiatives without interference. Tan’s track record of transforming smaller companies into industry players may shape his approach in reviving Intel. Originally from Malaysia and now a U.S. citizen, Tan pursued nuclear engineering at MIT before venturing into venture capital with Walden International in 1987, focusing on unconventional investments in chip startups.
Tan’s belief in the competitiveness of small engineering teams led to successful bets on startups like Annapurna Labs and Nuvia, which were later acquired by major players in the industry. He also recognized the trend of separating chip design from manufacturing, a shift that reshaped the semiconductor landscape. Tan’s tenure as CEO of Cadence Design Systems saw remarkable growth, with a focus on software for chip design and strategic partnerships with manufacturers like Taiwan Semiconductor Manufacturing Co.
Under Tan’s leadership, Cadence’s stock value soared, and the company secured Apple as a major client during the tech giant’s transition to in-house chip production. Tan’s forward-thinking approach and successful track record position him well to tackle Intel’s challenges and drive the company’s future growth.
Companies in the chip industry like Broadcom collaborate with tech giants such as Google and Amazon to create custom AI chips, which are then manufactured by TSMC. Analyst Karl Freund from Cambrian AI Research commended the strategic alignment of Cadence with TSMC, recognizing them as a top player in the field. This information was reported by Stephen Nellis and Max A. Cherney in San Francisco, with editing by Peter Henderson and Sam Holmes.
