Analyst Jack Gold gave Intel the thumbs up in appointing Lip-Bu Tan as its next CEO, allaying worries the company would tap a financial specialist at a time when it desperately needed a chip industry expert.

Gold is president and principal analyst at J Gold Associates: in a statement, he highlighted Tan’s deep grasp of the chip industry, predicting Intel would reap benefits across design and production.

Intel announced Tan as the permanent successor to Pat Gelsinger yesterday (12 March), with the appointment beginning on 18 March and ending the tenure of interim co-CEOs David Zinsner and Michelle Johnston Holthaus.

Tan is due to rejoin Intel’s board, a post the company stated he relinquished in August 2024.

Intel explained Zinsner would remain an EVP and CFO, and Johnstone Holthaus continues as CEO of Intel Products. Interim executive chair Frank Yeary moves back to being an independent board head.

The chip company stated Tan brings “more than 20-years of semiconductor and software experiences”, with spells as CEO of software company Cadence Design Systems and credit as a founding managing partner with Walden Catalyst Ventures among the roles highlighted.

“Tan is a longtime technology investor and widely respected executive”, Intel stated.

Gold star
The incoming CEO’s broad semiconductor knowledge is tipped by Gold to benefit Intel Foundry along with the company’s design units.

Gold said the production division “needs help” in making “tools more user friendly and accessible for potential customers”.

Any move for a “financial or other non-chip industry CEO” would have “been a bad” one, Gold said. He expects Tan’s time with Cadence Design Systems to be a particular benefit when it comes to tackling the significant challenges facing Intel.

Gold called for Tan to be given something of a free rein: “hopefully the board will stay out of his way as he makes needed changes”.

“While I didn’t agree with the firing of Pat Gelsinger, at least his replacement seems capable of continuing Intel’s turnaround”.

But Gold noted patience is the watchword, asserting it would take up to two years for the effects of a turnaround in Intel’s business to become clear.