Intel has appointed Lip-Bu Tan as its new CEO, effective March 18th, following the departure of Pat Gelsinger, who was pushed out by the board of directors after less than four years in the role. Tan, formerly the CEO of chip design services company Cadence, will take over from interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus.

Tan's appointment comes after a tumultuous period for Intel, which has struggled to regain its footing in the competitive semiconductor market. Gelsinger, who worked at Intel for 30 years before leaving and eventually returning in 2021 to take the CEO job, was reportedly pushed out by the board of directors due to his inability to turn things around at the company.

Tan brings a wealth of experience to the role, having served as CEO of Cadence from 2009 to 2021 and as a member of Intel's board of directors from 2022 to 2024. During his tenure at Cadence, Tan more than doubled the company's revenue, according to Intel's press release. In a statement, Tan expressed his enthusiasm for joining Intel, citing the company's "powerful and differentiated computing platform, a vast customer installed base, and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap."

The question now is what direction Tan will take Intel in. Will he resume the company's previous plan to focus on its own wholly owned chipmaking business, or will he accelerate plans to spin off some or all of its manufacturing business? Alternatively, Tan may consider selling off parts of the company. Whatever the approach, Tan will need to move quickly to address Intel's struggles and regain the company's position in the market.

Tan's appointment is not without precedent. He was previously tapped to become CEO of Cadence following a period on the company's board, a move that ultimately proved successful. Intel will be hoping for a similar outcome this time around, as the company looks to navigate the challenges of the rapidly evolving tech landscape.

The appointment of Tan as CEO marks a new chapter for Intel, and one that will be closely watched by industry observers and investors alike. As the company looks to regain its footing and drive growth, Tan's leadership will be crucial in shaping Intel's future direction and success.