Lip-Bu Tan Got High Praise From TSMC Founder Morris Chang For Saving Cadence From 'Pretty Big Trouble' — Will The Magic Work At The 'New' Intel

Lip-Bu Tan, once praised by Taiwan Semiconductor Manufacturing Co TSM founder Morris Chang for rescuing Cadence Design Systems CDNS from turmoil, is now stepping in to lead Intel Corp INTC at a critical turning point for the American chip giant.

What Happened: Back in 2016, Bu Tan was honored with the prestigious Morris Chang Exemplary Leadership Award by the Global Semiconductor Alliance (GSA), recognizing his transformational leadership as CEO of Cadence Design Systems.

At the time, Chang didn't hold back his praise.

"In 2009, Cadence was in pretty big trouble," Chang said. "And Lip-Bu led Cadence out of the trouble. In the last seven years, he has made it a very strong company. He instituted an execution-first, technology-first attitude in Cadence, made key acquisitions, attracted top talent, into Cadence and even more importantly he rejuvenated Cadence’s design tool."

See Also: Intel ‘Will Be Fighting For Every Socket’ In The Data Center Business, Says Co-CEO Michelle Holthaus As Competition From AMD, Nvidia Heats Up

Now, Tan has been appointed CEO of Intel. In a letter to employees, Tan said they were "in many ways" the "founders" of the "New Intel," signaling a fresh start for the struggling chipmaker.

Tan succeeds former CEO Pat Gelsinger after months of executive search. A respected veteran with a background in physics and nuclear engineering, Tan previously served on Intel's board and has led numerous high-tech ventures throughout his career.

He reportedly resigned from the company's board following a dispute with Gelsinger.

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Why It's Important: Intel's turnaround is a matter of national interest, as it plays a vital role in the U.S. semiconductor ecosystem. Tan is stepping in amid rising competition from TSMC and mounting pressure to keep Intel's design and manufacturing operations intact.

Tan's legacy at Cadence — where he oversaw a revival in revenue and stock performance — suggests he may be the steady hand Intel needs.

At 65, he is no stranger to the chip industry. Born in Malaysia, he earned a degree in physics from Nanyang Technological University, then went on to get a master's in nuclear engineering from MIT and an MBA from the University of San Francisco.

A longtime technology investor, Tan has also chaired Walden International, a venture capital firm he founded in 1984, and served on the boards of Hewlett Packard Enterprise and SoftBank Group.

He led Cadence from 2009 to 2021, guiding the company from financial instability to market leadership in electronic design automation. In 2022, Tan joined Intel's board and was later given oversight of manufacturing operations.

Whether he can repeat his Cadence success at Intel remains to be seen. But if Chang's words hold true, Intel may have just handed the wheel to the one person capable of steering it through stormy waters.

Investors appear optimistic: Intel shares jumped about 11% in after-hours trading following the announcement. Year-to-date the company's shares are up 2.27%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.