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Intel has just appointed Lip-Bu Tan as the new CEO, which is an important step for the company to transform its future in the highly competitive semiconductor field. Personalities like Tan, who are best known for being the champions of startups that are not picked by anyone else, now are facing the very big task of breathing new life into Intel, which is almost a tailender in terms of competitors for some years now.
An experienced investor and entrepreneur, Tan has an amazing past where he has managed to identify companies with bright prospects and change them into the leaders of their markets. Walden International, which he co-founded, is a venture capital firm that invests at the early stage of the technology industry, and he was the executive chairman of the Design Systems team, where he offered semiconductor expertise that is highly anticipated to be subversive in Intel.
Intel faced severe problems because of competitors such as TSMC and AMD, as they could not produce the chips and the supply chain was disrupted, which blocked their growth. However, their plans for a comeback are not going as they expected. The appointment of Tan means that Intel is relying on his knowledge of the field and his financial skills to be the main drivers of innovation and business activity.
There is a reason why analysts believe that Tan is a game changer when it comes to getting Intel to enter into partnership agreements and to come out with smart and risky investment ideas. However, the obstacles that the company has to overcome are still big as the competition in the global semiconductor industry gets tougher. Maybe Tan’s knack for bringing underdogs to the top is not a guarantee for Intel to succeed until we witness it.
Nevertheless, Intel won’t be saved only by changes in management. The company will have to remove the technical barriers, build trust with the most important clients, and quicken the timelines to correspond to the market leaders. Due to geopolitical frictions, which impact the chip production chain and arise out of the growth of costs, Tan should be able to guide the company through complex global challenges. It will be his talent to fight both with the innovation and execution that will finally decide whether Intel can reach its past reputation or will it be overcome by competition.
