Struggling Intel names industry veteran Lip-Bu Tan as CEO
NEW YORK
Intel, the U.S. computer chipmaker struggling to catch up in the AI race, has announced tech industry veteran Lip-Bu Tan as its new chief executive.
Tan told the Intel team his focus would be on engineering, saying it "won't be easy" to overcome challenges faced by the company.
Tan will start as Intel chief on March 18, according to the company.
Intel is one of Silicon Valley's most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia, a graphics chip maker, as the world's preeminent AI chip provider.
Nvidia's strength is in chips for powering AI, which are coveted by tech companies competing in that technology.
Intel's niche has been in chips used in traditional computing processes being eclipsed by the AI rage.
Former U.S. president Joe Biden's administration last year finalized a $7.9 billion award to Intel as part of an effort to bring semiconductor production to U.S. shores.
But Intel in February extended the timeline for completing two new fabrication plants in Ohio, saying it is taking a prudent approach to the $28 billion project.
For the full year 2024, Intel recorded a net loss of $18.8 billion as the U.S. chip giant continues to struggle to stake its place in the artificial intelligence revolution.
In Europe, Intel late last year said it was delaying its plans to build two mega chip-making factories in Germany and Poland as the company faces lower demand than anticipated.
Intel also said at the time that it would pull back on its projects in Malaysia.
