Intel said on Wednesday that it had appointed Lip-Bu Tan as its new CEO.
Tan was previously the CEO of Cadence Design Systems, which makes software used by all the major chip designers, including Intel. Tan was previously on Intel’s board but departed last year, citing other committments.
He replaces interim co-CEOs David Zinsner and MJ Holthaus, who took over in December when former Intel CEO Patrick Gelsinger was ousted.
The appointment closes a chaotic chapter in Intel’s history, as investors pressured the semiconductor company to cut costs and spin off businesses as its sales and business outlook faltered.
Intel shares rose over 13% in extended trading.
Tan becomes the fourth permanent CEO at Intel in seven years. Following Brian Krzanich’s resignation in 2018, following the revelations of an inappropriate relationship with an employee, Bob Swan took the helm in Jan. 2019. He departed two years later after Intel suffered numerous blows from competitors and chip delays. Swan was succeeded by Pat Gelsinger.
In January, Intel issued a weak forecast even as it beat on earnings and revenue. The company pointed to seasonality, economic conditions and competition, and said clients are digesting inventory. The prospect of tariffs was adding to the uncertainty, Zinsner said.
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