By Max A. Cherney and Stephen Nellis
(Reuters) -Truggling US Chipmaker Intel on Wednesday mentioned former board member LIP -BU Tan as CEO in force on March 18, more than three months after the company veteran had driven Pat Gelsinger.
Tan, a respected veteran of the semiconductor industry, has long been seen as a CEO administration. He was approached by the Intel board in December, reported Reuters, to gauge his interest in taking on the job.
Shares of the company rose by 12% in extensive trade.
Intel undergoes a historical transition while it tries to come from one of the gloomy periods. While he is struggling to cash in in investments in advanced AI chips, the company outsources a lot to become a contract manufacturer of chips for other companies, so that some investors are concerned about pressure on her cash flows.
Tan is an old technology investor with more than 20 years of experience in the industry. He used to serve from 2009 to 2021 as CEO of Intel supplier Cadans Design Systems and was on the board.
“The street seems to like it. He is a veteran in the industry of semiconductors with an active eye on AI startups, but he knows how to work, so in general a good move looks like,” said Ben Bajarin, chief analyst at Creative Strategies consultancy.
Tan left the Intel sign last year due to disagreements about how you can turn the company around. He felt that Intel had too many layers of middle management and that the efforts of chip contract production were insufficiently customer -oriented, Reuters reported earlier. Tan will come to the board again, Intel said.
The most consistent decision that TAN is confronted will be whether the chip design and the production activities of Intel will keep together or be split apart. Reuters reported that Intel -rival Taiwan Semiconductor Manufacturing has approached some of the greatest potential production clients in Intel about forming a joint venture to exploit the Intel factories.
Intel's statement in which the CEO appointment was announced did not report changes that may be near the company.
(Reporting by Stephen Nellis and Max A. Cherney in San Francisco, Bhanvi Satija in Bengaluru and Juby Babu in Mexico City editing by Arun Koyyur, Sayantani Ghosh and Matthew Lewis)
