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Intel Names Chip Industry Veteran Tan as CEO

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Bloomberg Mercury Mar 13 21:25 · 15.3k Views

Intel named Lip-Bu Tan as its next chief executive officer. Tan will assume the role on March 18 and will rejoin the board as well after stepping down in August 2024. Tom Mackenzie reports on Bloomberg Television.

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Transcript

  • 00:00 What is the task ahead of time?
  • 00:03 It's a monumental task, isn't it, Philip Bhutan, who is taking over, as you said
  • 00:07 in March from Intel, given all the challenges of this business, given the challenge around trying to compete with NVIDIA, given the debt load, given the fact that they have seen their earnings plummet for now, as you've seen the market reaction pretty positive in the context, of course, of an Intel stock that is down
  • 00:21 about 50% in the last 12 months.
  • 00:23 But this is someone with deep experience
  • 00:25 AD Intel, formerly a board member.
  • 00:27 He will rejoin the board as well as taking on the CEO role, of course, former head of Cadence as well the software and design company.
  • 00:33 And we'll bring that experience to bear.
  • 00:35 He says this will be a challenging job,
  • 00:37 but he is committed.
  • 00:39 Every fibre in his being suggests and tells him he can turn Intel
  • 00:43 around.
  • 00:43 This is still a company that's turning around revenues of around 50 billion U.S.
  • 00:47 dollars
  • 00:47 a year annually.
  • 00:48 It is still in about 70% of personal computers worldwide in terms of their chips.
  • 00:53 But the challenges are monumental.
  • 00:55 Also suggesting that the foundries business that they've spent so much CapEx on building out in the US that that will continue.
  • 01:02 Pat Gelsinger, a big part of his plan, of course, before he was ousted,
  • 01:05 possibly for not doing enough to turn this company around.
  • 01:09 But this new CEO comes with the experience, comes with the ambition.
  • 01:12 But my goodness, the challenges for Intel are huge going for.