USA: Intel has appointed Lip-Bu Tan as its new CEO, placing the veteran technology investor and semiconductor expert at the helm of one of the world’s most recognisable chipmakers. Taking charge on March 18, Mr Tan steps in at a critical moment, as Intel faces growing competition, delays in chip manufacturing, and a struggle to maintain its leadership in the industry.
According to Free Malaysia Today, he has a base salary of $1 million (S$1.34 million) and an annual cash bonus of up to $2 million, with his compensation package being tied closely to Intel’s future success.
His contract includes a unique performance-based stock award structure, allowing him to retain two-thirds of his stock awards if there is a “change in control” or a major shift in ownership within 18 months. The pressure is on for him to steer the company in the right direction and to do it expediently.
A seasoned leader with deep industry ties
Mr Tan is no stranger to the semiconductor world. Originally from Malaysia, he has built an impressive career spanning leadership roles in major tech firms, venture capital, and semiconductor design. As the founder of Walden International, he has played a key role in shaping Asia’s startup and semiconductor ecosystem. His leadership at Cadence Design Systems, where he served as CEO for over a decade, helped the company cement its position as a leader in electronic design automation (EDA).
He has also been actively involved with some of the biggest names in tech, having served on the boards of Intel, Hewlett Packard Enterprise, and Schneider Electric. Given his experience, he brings both strategic insight and a deep understanding of the semiconductor landscape, qualities that will be crucial in his new role.
Intel’s uphill battle
Mr Tan takes over at a time when Intel is struggling to keep pace with competitors like AMD, Nvidia, and TSMC. The company has faced repeated delays in advancing its chip manufacturing technology, losing ground in consumer and data centre markets. With the rise of artificial intelligence (AI) and the increasing demand for cutting-edge semiconductors, Intel must innovate quickly to stay relevant.
The challenge will be balancing Intel’s dual role as a chip designer and a manufacturer. The company has invested heavily in expanding its foundry business, aiming to compete with TSMC and Samsung in contract manufacturing. However, this transition has been anything but smooth, with execution missteps and financial setbacks.
Tan’s extensive experience in venture capital and semiconductor startups could prove invaluable in bringing fresh ideas to Intel’s strategy. His ability to foster innovation, forge strategic partnerships, and make tough calls will be tested as he works to restore Intel’s reputation as a market leader.
A new chapter
Shortly after his appointment, Mr Tan shared his thoughts on LinkedIn, writing: “I am humbled and honoured to join Intel as new CEO at this important time in the company’s history. Michelle and Dave have done an excellent job as interim co-CEOs. I look forward to working with them and the rest of the team. Together, we are going to restore Intel’s position as a world-class products company and establish ourselves as a world-class foundry focusing on delighting our customers.”
His words signal a clear focus on both innovation and customer satisfaction, two areas where Intel has fallen behind in recent years. Whether Tan can deliver on this vision remains to be seen, but his appointment has certainly raised expectations.
Intel’s future now rests in Tan’s hands. His track record suggests he has what it takes to turn things around, but the road ahead will not be easy. With a performance-based contract that ties his compensation to Intel’s success, the next few years will determine whether he can steer the chip giant back to its former glory. Investors and industry insiders will be watching closely.
Read more: The new Intel CEO: How Singapore’s Tan Lip-Bu is shaping the future of tech