Lip-Bu Tan takes over

Crisis-hit US chip giant Intel has a new boss

In recent years, Intel has maneuvered itself into a crisis through a series of bad decisions and missed opportunities.(Bild: AP/Paul Sakuma)

The struggling US chip giant Intel has a new boss. Industry veteran Lip-Bu Tan is to take over the reins on March 18, the company announced. He was a member of the Intel Board of Directors until last August, when he resigned - according to media reports, following differences of opinion with the then CEO Pat Gelsinger. 

He in turn threw in the towel in December. His ambitious plans to lead the semiconductor pioneer out of the crisis only made slow progress. The 65-year-old Lip-Bu Tan made a name for himself as head of the chip company Cadence Design Systems, among other things. 

Years of problems
Intel once dominated the semiconductor market, but has been struggling with problems for years. Graphics card specialist Nvidia has conquered a leading position, particularly in the business with chips for artificial intelligence. Intel is also under greater pressure in its traditional business with PC processors and chips for data centers.

Part of Gelsinger's strategy was to establish Intel as a contract manufacturer for other chip developers. To this end, he aimed to invest billions in new plants. However, the construction of a European factory in Magdeburg was postponed for two years. A major project in the USA has also been delayed by several years.

TSMC wants to take over contract manufacturing with partners
Meanwhile, according to insiders, the Taiwanese chip giant TSMC has proposed to several US chip companies that they jointly take over Intel's contract manufacturing. TSMC has made inquiries with AMD, Broadcom, Nvidia and Qualcomm, people familiar with the matter said on Wednesday. According to the plans, TSMC would hold a maximum of 50 percent of the joint venture and take over the semiconductor production. However, the talks are still at an early stage.

The move is based on an initiative by US President Donald Trump, the insiders said. He had asked TSMC to lend a helping hand to the ailing former US flagship company Intel. However, the government is against a complete takeover of Intel's contract manufacturing by a foreign company.

Intel, TSMC, Nvidia, AMD and Qualcomm did not wish to comment on this issue. Broadcom and the US government, which would have to approve such a deal, were initially unavailable for comment.