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A New Direction for Intel: CEO Tan Steps In to Lead the Charge

David Prior by David Prior
April 7, 2025
Reading Time: 3 mins read
A New Direction for Intel: CEO Tan Steps In to Lead the Charge
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Intel has announced the appointment of Lip-Bu Tan as CEO. This decision came as a surprise, given that Tan left the company in August 2024 after a high-profile scandal related to disagreements over Intel’s recovery strategy. Now, he must lead the company through a difficult period and try to steer it out of the crisis that has been persisting for several years.

Lip-Bu Tan will replace David Zinsner and Michelle Johnston Holthaus, who have jointly run Intel since December 2023 following Patrick Gelsinger’s sudden resignation. Tan’s appointment marks an essential step for the company, which had faced uncertainty for a long time. Despite their efforts, the interim managers were unable to devise a clear strategy that satisfied investors and the market.

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Tan will also rejoin Intel’s board of directors, which he left in August 2024. His return to the board and appointment as CEO indicate that the shareholders and the company’s management see him as a leader capable of radically changing the situation.

Before leaving Intel in August 2024, Lip-Bu Tan entered into a fierce conflict with his successor. The primary source of disagreement was Intel’s recovery plan, which, according to Tan, was not radical enough. He advocated for reducing redundant staff, especially among middle managers, who, in his opinion, did not significantly contribute to the company’s engineering activities. This included Intel’s project teams, which were five times larger than those of competitors like AMD. According to Tan, such measures would boost efficiency and reduce maintenance costs.

One of the new CEO’s first initiatives will likely be mass layoffs of “extra” employees. Although painful, this decision may be necessary to improve the company’s competitiveness. Investors have already reacted positively to Tan’s appointment; Intel shares jumped more than 15%, pointing to increased confidence in his ability to implement the necessary reforms. Who knows? Intel might just land on the list of top stock gainers before long.

With a new permanent CEO, investors hope the company can recover from the crisis. However, one key aspect of Intel’s management strategy will remain unchanged — the transformation into a major contract chip manufacturer. In recent years, the company has been actively investing in the development of its production facilities, striving to compete with giants like TSMC and Samsung. This strategy, although ambitious, has yet to produce the expected results.

Lip-Bu Tan’s statements about Intel’s future do not yet provide full clarity on the company’s strategic direction. In particular, it remains unclear how the further separation of production assets and processor development operations will proceed. From an investor’s point of view, such uncertainty may contribute to stock price stagnation. However, as soon as Intel’s strategic plans become clear, the market is likely to respond accordingly, similar to the December 2024–January 2025 bull run, when BTCUSD surged as high as $109,300.

Lip-Bu Tan’s appointment as Intel’s CEO is an essential step for a company seeking to emerge from a prolonged crisis. He’s facing many challenges, but his experience, determination, and willingness to take bold actions are encouraging. Mass layoffs, business restructuring, and a clear definition of strategic priorities will be key elements of his work in the coming months. Investors and the market are looking to the new leader with hope — but only time will tell if he can restore Intel to its former glory and competitiveness.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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