Lip-Bu Tan takes over as CEO of the troubled US chipmaker Intel effective immediately. This appointment ends a months-long search for a suitable successor to Pat Gelsinger, whom the board unexpectedly dismissed last December. Immediately after the announcement, the company's shares rose by more than 11 percent in after-hours trading.

Tan, who previously led the leading chip design software manufacturer Cadence for twelve years, only left Intel's board of directors last August – apparently due to strategic differences regarding the company's direction at the time. Nevertheless, he had long been considered one of the most promising candidates for the top position.

His inauguration takes place amid a critical phase: Intel has recently incurred billions in losses in its manufacturing division and halted major construction projects, including in Europe. At the same time, the company has come under intense scrutiny due to the geopolitical significance of the semiconductor industry. The U.S. is attempting to expand domestic chip production to reduce dependence on Taiwan and thus the risk in potential conflicts with China.

Tan has already signaled clear ambitions in an internal message to employees: Intel should achieve "world-class level" in both the foundry business and product development. While experts say he lacks direct experience in leading an integrated semiconductor manufacturer with chip design and production from a single source, he brings extensive industry knowledge and a strong network—crucial qualities that the company has been lacking, according to the supervisory board chairman Frank Yeary.

During the transition phase since Gelsinger's departure, CFO David Zinsner and Chief Product Officer Michelle Johnston Holthaus had served as Co-CEOs and initiated significant cost-cutting measures. These included, among other things, the planned sale of a majority stake in the chip manufacturer Altera and the spin-off of the venture capital division. Both managers will now remain in their previous roles within the company.

Against the backdrop of new US trade restrictions, falling stock prices in the chip industry, and the ongoing dominance of competitors like Nvidia and AMD in the booming AI market, Intel is under significant pressure. With Tan, investors are now hoping for a decisive turnaround in revenue and market positioning.