Goodbye Intel - new CEO Lip Bu Tan will lay off half the workforce to save the company from possible bankruptcy
Lip-Bu Tan’s career wasn’t always destined for the semiconductor industry—in fact, it took a major nuclear scare to push him in a different direction. A brilliant student from the start, Tan earned a physics degree from Nanyang University in Singapore at just 19 years old. He then moved to MIT to pursue a master’s in nuclear engineering, seemingly set on a future in the field.
But then came 1979 and the Three Mile Island nuclear accident, which shook public confidence in nuclear energy. As concerns over safety skyrocketed, job opportunities in the field plummeted. With the nuclear sector looking uncertain, Tan decided to change gears entirely.
A sharp pivot to business and tech
Instead of waiting for the nuclear industry to recover, Tan went back to school, this time at the University of San Francisco, where he earned a master’s degree in business administration. That decision paid off big time. He went on to found Walden International, a venture capital firm that zeroed in on the semiconductor and alternative energy sectors—both of which turned out to be massive growth industries.Lip-Bu Tan has an eye for investments that pay off big—especially in the semiconductor industry. One of his standout moves was backing Annapurna Labs, a company that later got scooped up by Amazon. That acquisition turned Annapurna into a key player in the tech giant’s chip development, powering much of its infrastructure. Another win? He also put money into Nuvia, which went on to be snapped up by Qualcomm in 2021.
From investor to power player in the industry
Tan wasn’t just writing checks—he was getting directly involved. In 2004, he joined the board of directors at Cadence Design Systems, one of the biggest names in chip design software. Just a few years later, in 2008, he stepped up as co-CEO, before taking full leadership in 2009. Under his watch, Cadence’s stock skyrocketed by 3,200%, cementing its role as a critical partner for companies like Apple.His success at Cadence opened even more doors. Over the years, Tan has become a fixture in boardrooms across multiple industries. He’s held seats at Hewlett Packard Enterprise, Schneider Electric, and, perhaps most intriguingly, SoftBank—one of the most influential investment firms in tech.
One of the biggest signs of what’s ahead for Intel isn’t just who Tan is, but who he disagreed with. While his ties to SoftBank are notable, his past role at Intel’s board of directors from 2022 to 2024 is even more telling. He stepped down in August 2024, and it wasn’t just a quiet exit—he left due to clear disagreements with then-CEO Pat Gelsinger.
A vision at odds with Intel’s old ways
According to Reuters, Tan’s concerns about Intel’s direction weren’t minor. He wasn’t thrilled with the company’s growing workforce, saw too much red tape slowing things down, and believed Intel had become too cautious when it needed to take bigger risks. He also had serious doubts about the company’s approach to artificial intelligence and was frustrated that he couldn’t push through an initiative to secure third-party manufacturing contracts—a move that could have positioned Intel as a powerhouse in the semiconductor industry.At 65 years old, Tan isn’t stepping into the CEO role to play it safe. Analysts like Patrick Moorhead predict he’ll make aggressive cost-cutting moves, and in the corporate world, that almost always spells layoffs.
One of the biggest questions surrounding Tan’s leadership is whether he’ll push for a major shake-up—specifically, splitting Intel’s foundry unit from its processor design division. This is exactly what AMD did back in 2009, a move that ultimately worked in its favor. Many industry experts have been urging Intel to follow suit, arguing that it could help the company operate more efficiently.
If there’s one thing working in Tan’s favor, it’s his reputation. He’s not an outsider trying to find his footing—he already knows the players inside and outside of Intel. The company’s potential clients are familiar with him too, especially those who worked with him during his time on Intel’s board or partnered with Cadence while he was CEO.
Goodbye Intel - new CEO Lip Bu Tan will lay off half the workforce to save the company from possible bankruptcy
One of the biggest signs of what’s ahead for Intel isn’t just who Tan is, but who he disagreed with. While his ties to SoftBank are notable, his past role at
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