Intel Corporation (NASDAQ: INTC) announced the appointment of Lip-Bu Tan as its new CEO, effective March 18, sending shares up more than 11% in after-hours trading.

Tan, a semiconductor industry veteran with over 20 years of experience, previously led Cadence Design Systems (NASDAQ: CDNS) as CEO from 2009 to 2021. During his tenure, Cadence more than doubled its revenue, expanded operating margins, and saw its stock price soar by over 3,200%. Tan will also return to Intel's board of directors after stepping down in August 2024.

Interim executive chair Frank Yeary praised Tan's leadership, highlighting his expertise in technology, strong industry relationships, and ability to drive shareholder value.

Tan emphasized Intel's commitment to engineering excellence in a letter to employees, stating, "We will push ourselves to develop the best products, listen intently to our customers, and hold ourselves accountable to the commitments we make so that we build trust."

Following Tan's appointment, Yeary will resume his role as independent chair of the board. Interim co-CEO David Zinsner will remain as executive vice president and chief financial officer, while Michelle Johnston Holthaus is expected to continue as CEO of Intel Products.

The leadership change comes as Intel seeks to strengthen its position in the semiconductor market amid rising competition. Investors reacted positively to the news, driving Intel's stock higher in extended trading.