Lip-Bu can be one of the most powerful technology executives that you have ever heard. When assuming one of the highest profile positions on the planet, the CEO of the problematic and historical manufacturer of Intel chips, its performance will be in full exhibition.
So, named CEO of Intel on Wednesday, faces a huge challenge to reverse the operations of a company that put the “silicon” in Silicon Valley.
Although it is little known to the public, its advantage is that practically all the previous and potential clients of Intel know him and have done business with him, either buying one of the many new companies that he supported or using software of a company he directed.
So he codes with people like his, from AMD and Jensen Huang de Nvidia, two AI chips leaders who, according to Reuters reports, had been proposed to invest in Intel. It is also likely that their efforts will be observed closely by the president of the United States, Donald Trump, who is anxious for Intel recovering.
So “you can take advantage of your experience and especially your connections in the industry, while seeking excellence within Intel,” said independent analyst Jack Gold. “Hopefully the Board remains outside its way while making the necessary changes.”
Intel shares rose more than 10% in operations prior to marketing on Thursday.
To straighten the largest ship in the semiconductor industry, TAN, 65, can use disadvantage strategies that helped change smaller companies that later became large.
Born in Malaysia, raised in Singapore and now Naturalized American, so arrived at the US for its advanced education years, studying nuclear engineering at the Massachusetts Institute of Technology. He then moved to California to study business and founded the Risk capital firm Walden International in 1987. That company, named for the pond where the writer Henry David Thoreau sought an unconventional life, made unconventional bets.
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New Intel CEO, Lip-Bu Tan, has a history like a successful loser
I so believed that relatively small equipment of startup engineers with good chips design ideas could compete successfully against established chips giants, and invested money in hundreds of startups. For example, it took a participation in Annapurna Labs, a startup that was later bought by Amazon for 370 million dollars. Amazon says that it now displays more of its own central processors than Intel.
He also invested in Nuvia, that Qualcomm buy for 1.4 billion dollars in 2021, which makes it a central part of its impulse to compete with Intel in the chips markets for laptops and PC.
So still actively participating in new companies that could become competitors or acquisition objectives for Intel.
For example, earlier this week he invested in the Fotonic Startup of Celestial AI, which is backed by Intel’s rival, AMD.
As an investor and executive director, it was so early in recognizing an important trend that has swept the chips industry in the last 30 years: that the design and manufacture of chips would be divided into two different specialties.
From 2009 to 2021, he was so executive director of Cadence Design Systems, a chip design software company whose fortune revived. So focused on the software supply for sophisticated designs and was closely associated with Taiwan semiconductor manufacturing co, that since its founding days swore that it would focus solely on manufacturing.
During the time of such in Cadence, the company’s shares were appreciated 3,200% and got Apple as one of its largest clients, since the iPhone manufacturer moved away from suppliers like Intel and approached their own chips.
Cadence tools also became fundamental for chip industry companies such as Broadcom, which helps Google, Amazon and others that design their own AI chips and TSMC manufactures them.
“He did a very good job when aiming (Cadence) in the right direction,” said Karl Freund, an analyst at Cambrian Ai Research. “Cadence really aligned with TSMC, they saw them as a leader and the reference store.”
With Reuters information.
