Lip-Bu Tan’s Net Worth Explained: Former Intel Board Member Who Left Over Disagreements Is Now CEO

• Lip-Bu Tan, Intel’s newly appointed CEO, has amassed a large net worth throughout his sweeping career.
• The semiconductor veteran previously left his position as chair at Intel due to disagreements over strategy.
• Lip-Bu is Intel’s fourth permanent CEO in seven years.

Lip-Bu Tan, a former Intel board member who made waves by stepping down over internal disputes, has re-emerged as the company’s new CEO.

Almost two years after his departure, Lip-Bu Tan returned to Intel on March 18 as its CEO.

The once-leading chip firm continues to struggle with declining profits.

Lip-Bu Tan’s Net Worth

Lip-Bu Tan’s net worth is estimated to be at least $593.2 million, according to Quiver Quantitative estimates .

Lip-Bu Tan’s net worth is estimated to be closely tied to his significant holdings in Cadence Design Systems (CDNS) and Credo Technology.

According to Quiver Quantitative, Lip-Bu Tan owns 1.4 million shares of CDNS stock and has sold 7.7 million shares since 2021, which are estimated to be worth $251.1 million.

Lip-Bu Tan’s Rise to Riches

Born on November 12, 1959, in Muar, Johor, Malaysia, Lip-Bu Tan grew up in Singapore and earned a Bachelor of Science in Physics from Nanyang University and a Master of Science in Nuclear Engineering from the Massachusetts Institute of Technology (MIT).

Lip-Bu Tan had intended to work in the nuclear power industry following his education, but the 1979 Three Mile Island accident caused him to change his mind after the incident paused the construction of new nuclear plants.

In 1987, Lip-Bu Tan founded Walden International, a venture capital firm that grew from $20 million to $2 billion by 2001. The company focused on semiconductors, alternative energy, and digital media sectors.

Through the fund, Lip-Bu Tan invested in companies like S3 Graphics and Sina Corp, earning recognition as a pioneer in Asian venture capital.

In 2001, Forbes labeled Lip-Bu Tan “the pioneer of Asian VC.”

Cadence Design Systems

In 2004, Lip-Bu Tan joined the board of U.S. electronic systems design firm Cadence Design Systems and became CEO in 2009.

The company specializes in designing software and hardware for semiconductors used in various industries.

Under Lip-Bu Tan’s leadership, Cadence’s revenue reached  $1.3 billion by 2012, including $440 million in that year alone.

Lip-Bu Tan remained CEO of Cadence until December 2021, transitioning to the role of executive chairman until May 2023, when he retired from the board.

Stepping Down From Intel

In 2022, Lip-Bu Tan was appointed to Intel’s board as part of a plan to revitalize the company’s place in the industry.

At the time, the company faced significant challenges that impacted its financial performance and market position.

The company’s annual revenue declined by 20% to $63 billion, marking a substantial decrease from the previous year’s $79 billion.

This downturn was primarily driven by a 32% drop in fourth-quarter revenue, amounting to $14 billion, and a net loss of $664 million for the quarter.

In response to setbacks, Intel announced plans to reduce expenses by $3 billion in 2023, with further reductions totaling $10 billion by 2025.

After two years, Lip-Bu Tan stepped down from the board after reported disagreements on how to turn around the company.

Lip-Bu Tan’s Return to Intel

The industry veteran officially returned to take the position of Intel CEO on March 18.

Speaking at Intel’s Vision event on March 31, Tan gave his first remarks since his return, promising a fresh new chapter for the fledgling company.

Lip Bu-Tan said he would be working directly with engineers to develop new products based on the feedback the company receives from its customers.

“Please be brutally honest with us. This is what I expect of you this week, and I believe harsh feedback is most valuable,” he said.

The CEO added that the company has “a lot of hard work ahead” and that there were “areas where we’ve fallen short of your expectations.”

“We fell behind on innovation,” Lip-Bu Tan said. “We have been too slow to adapt and meet your needs.”

“We’re going to really drive some new ideas, giving engineers freedom to innovate from within,” he continued.

“My weekend is usually packed with a lot of engineers and architects. They have some brilliant ideas, they want to change the world, and that’s where I get excited to work closely with them,” he added.

In after-hours trading on March 18, Lip Bu-Tan’s appointment sparked a small surge in shares as some investors came back, but the stock declined around 1.2% following the CEO’s presentation.

The price previously surged over 12% to a high of $23.40 as optimism surged following the announcement of a new CEO.

In Lip-Bu Tan’s Own Words

• “I strongly believe that we have an obligation as individuals, and as Cadence Design, to take a stand against racism and to set an example for diversity, inclusiveness and understanding.”

• “I think in general industry consolidation is always good. But being a basketball player, I always believe, let the game come to you.”

• “One of the most enduring lessons I learned during my university days came as an athlete, not a student. I learned to believe in and trust my teammates, because I knew that was the surest path to victory — and there’s nothing I dislike more than losing.”