Intel announced that Li-Bu Tan, former CEO of Cadence Design Systems, is appointed as its new CEO. The news cheered Intel’s share price to a 12% surge.

Tan will rejoin the Board and take the helm from interim co-CEOs David Zinsner and MJ Holthaus, who took over in December after former Intel CEO Patrick Gelsinger’s departure.

In the statement on Intel’s website, Tan said, “In areas where we have momentum, we need to double down and extend our advantage. In areas where we are behind the competition, we need to take calculated risks to disrupt and leapfrog. And in areas where our progress has been slower than expected, we need to find ways to pick up the pace.”

Commentators believe the new CEO is hinting a foundry spin-off for the turnaround, as the Intel Foundry Service has been the main reason for Intel’s financial strains.

Tan will assume the CEO’s role on March 18, ending the tumultuous period following Pat Gelsinger’s sudden retirement.

"I am honored to join Intel as CEO," Tan said in a statement. "I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders."

Zinsner will remain executive vice president and chief financial officer, and Johnston Holthaus will remain CEO of Intel Products. Frank D. Yeary, who took on the role of interim executive chair of the board during the search for a new CEO, will revert to being the independent chair of the board upon Tan becoming CEO.

Have you read?

• Why Intel Never Caught Up to TSMC
• Is Intel Ready To Challenge Samsung, TSMC?

Uploaded by Ian Huang