Yesterday, Intel (INTC.US) announced the appointment of Chen Liwu as the company's new CEO following a series of management upheavals. This appointment will officially take effect on March 18.

Chen Liwu will take over from the current interim co-CEOs, David Zinsner and Michelle (MJ) Johnston Holthaus. Chen will also rejoin Intel's board of directors.

David Zinsner will continue to serve as Intel's Executive Vice President and Chief Financial Officer, while Michelle (MJ) Johnston Holthaus will remain as the CEO of Intel Products. Frank D. Yeary, who served as the interim board chairman during the search for a new CEO, will resume his role as independent board chairman once Chen assumes the CEO position.

With this appointment, all four major U.S. semiconductor giants—NVIDIA, AMD, Broadcom, and Intel—are now led by CEOs of Chinese descent. The biggest question surrounding this appointment is whether Chen Liwu can lead Intel through a new cycle of business transformation and profound changes, much like his industry peers.

Chen Liwu brings extensive experience in semiconductor investment and management in the Chinese market, including serving on the board of directors of SMIC (50.15, 0.30, 0.60%). He is arguably the most China-savvy CEO in Intel's history. How Intel, under his leadership, will strengthen industrial cooperation and asset investment in the Chinese market is also worth watching.

In a letter to all employees, Chen stated that he will not shy away from challenges and firmly believes in Intel's ability to win. He expressed confidence in turning the current situation around and working with employees to restore Intel's position as a world-class product company. He emphasized that under his leadership, Intel will become an engineering-focused company, with customer-first service as its top priority.

Intel Appoints Former SMIC Director, Known as the "Godfather of Venture Capital"

Even before the official announcement, there were market rumors that Intel had considered Chen Liwu, a former board member, for the CEO position. This decision was made three months after the departure of former CEO Pat Gelsinger.

Why Did Intel Choose Chen Liwu?

Looking back at history, Chen's extensive experience in the semiconductor industry, including wafer fabrication, EDA, and IP, his long-term investment philosophy, and his unique ability to identify project value from the innovation stage were key reasons for his selection.

Public records show that Chen Liwu was born in 1959 into a Chinese family in Malaysia and grew up in Singapore. He enrolled at Nanyang Technological University in Singapore at the age of 16, earning a bachelor's degree in physics. In 1978, he went to the United States, where he obtained a master's degree in nuclear engineering from MIT and an MBA from the University of San Francisco. In 2022, he was awarded the Semiconductor Industry Association's highest honor, the Robert Noyce Award.

Chen has nearly 20 years of experience in the semiconductor industry, having served as CEO of Cadence from 2009 to 2021. Cadence is a globally renowned EDA design tool and IP service provider. Under Chen's leadership, Cadence doubled its revenue, expanded its operating margin, and saw its stock price rise by over 3200%, with its latest market capitalization exceeding $65 billion.

Chen's more distinguished experience lies in the venture capital field, where he is known as the "Godfather of Venture Capital." In 1987, he founded the venture capital firm Walden International, focusing on investments in semiconductor, internet, and new energy startups in the U.S. and Asian markets.

Under his leadership, the Walden International team has managed over $3 billion in capital, investing in more than 500 companies globally, including over 120 semiconductor companies.

Chen's most notable investment was in SMIC. In 2020, as a founding shareholder and board member, he led SMIC to a successful listing on the STAR Market, making it the first "A+H" share red-chip company and setting a record for the largest IPO in nearly a decade on the A-share market.

From Chen's experience, long-term value investing is his most important investment philosophy. Chen stated that due to factors such as long cycles, many investors withdrew from SMIC's board, but he remained steadfast, believing in SMIC's future potential. He was the only board member who remained unchanged for 18 years until SMIC's return to the A-share market in 2020.

In addition, well-known STAR Market-listed semiconductor companies such as China Resources Microelectronics, AMEC, ACM Research, VeriSilicon, GigaDevice, GalaxyCore, and Allwinner Technology were all investment projects of Walden International. It can be said that Chen's visionary investments in venture capital have helped build China's vast semiconductor industry.

Chen once wrote that the art of investment lies in "seeing." "In 2000, when Richard Chang and his team wanted to build a chip manufacturing plant in China, we 'saw' the trend of the rise of local wafer fabs in China and the ambitious entrepreneurial team. In 2004, when the Yin Zhiyao team came to Silicon Valley for financing, we 'saw' AMEC as an emerging international equipment manufacturer, potentially breaking through the ranks of established high-end semiconductor equipment manufacturers and eventually becoming a major integrated circuit equipment company based in Asia."

Chen has stated that in the booming semiconductor entrepreneurship and technology investment market in China, comprehensive and clear insights are needed, along with a global perspective that can navigate through cycles. The essence of investment is simplicity: firmly choose to walk with like-minded people, and time will bring the most beautiful and generous rewards.

Goal: Restore Intel's World-Class Status

After being officially announced as the new CEO, Chen Liwu expressed confidence in turning the business around in a letter to Intel employees. He believes there is a truly unique opportunity to reshape the company at one of the most critical moments in its history.

"This is not to say it will be easy. It won't. But I joined because I firmly believe we have the ability to win. Intel plays a crucial role in the U.S. and global technology ecosystem. I believe that by working together, we can turn our situation around."

Chen stated that under his leadership, Intel will become an engineering-focused company. "We will push ourselves to develop the best products, listen carefully to our customers, and be accountable for our commitments, thereby building trust."

Chen said he adheres to a simple philosophy: stay humble, work hard, and delight our customers. "When you anchor yourself in these three core beliefs, good things happen. This has been true for every job I've had, and as Intel's CEO, I will approach my work in the same way."

Chen emphasized the importance of unity within the company. "One of the most enduring lessons I learned during my university years was as an athlete. I learned to believe in and trust my teammates because I knew this was the most reliable path to victory. This is the mindset everyone needs to adopt in building Intel's winning culture."

He also stated that as CEO, he will empower leaders with autonomy and take action to drive the business forward. "In many ways, we are all founders of the 'new Intel.' We will learn from past mistakes, use setbacks to strengthen our resolve, choose action over distraction, and fully realize our potential."

Chen said he will work with employees to restore Intel's position as a world-class product company, make it a world-class foundry, and delight customers in unprecedented ways. "This is what the moment demands of us as we reshape Intel's future. We also have a responsibility to serve our shareholders—I am equally focused on this and expect it to be the result of our renewed focus on customers."

The Most China-Savvy Intel CEO: What Moves Will He Make Next?

Chen Liwu's formal connection with Intel began in 2022 when he joined Intel's board of directors and was elected as a director. However, he resigned just two years later (in August 2024). At the time, market rumors suggested that Chen's resignation was due to disagreements with then-CEO Pat Gelsinger over company management.

In December 2024, Pat Gelsinger, who had worked at Intel for 33 years, resigned. During Gelsinger's nearly three-year tenure as CEO, Intel "fell from grace," failing to develop its foundry business as planned. The company's market capitalization dropped by approximately $150billion,anditrecordedahistoriclossof$18.8 billion for the year.

After taking the helm at Intel, Chen will face the daunting challenge of leading the company through a difficult transformation.

Under Chen's leadership, the industry and market are most focused on whether Intel will continue to invest resources in developing its chip foundry business or simplify its goals, accelerate the divestiture of its foundry division, or even further sell off other parts of Intel.

Regardless, the Chinese market has always been a strategic focus for Intel. Amid the booming AI applications, computing power cluster construction, and personal consumer electronics growth trends in China, Intel has already initiated a series of adjustments this year to regain the confidence of Chinese market customers.

On February 27, Intel announced the appointment of Wang Zhicong as the newly established Vice Chairman of Intel China. Wang will be fully responsible for managing Intel's business operations in China, reporting directly to Intel Senior Vice President and Chairman of Intel China, Wang Rui.

Wang Rui stated, "This appointment will further strengthen Intel China's management team, deepen Intel China's 2.0 strategy, and provide stronger support for our industry partners and customers in China."

Chen Liwu has deep connections with several leading companies in China's semiconductor industry. How he will further deepen mutual trust and cooperation with domestic industries, and whether Intel will increase its asset investments in China, are also worth watching.

Currently, several domestic semiconductor companies have close collaborations with Intel.

For example, Montage Technology previously collaborated with Intel on the Jintide CPU project, purchasing products from Intel. The Jintide server platform is a locally designed server platform solution for the Chinese market, including Jintide® CPUs and hybrid security memory modules (HSDIMM).

Similarly, CHIPSEA signed a memorandum of understanding with Intel to promote the construction of the local PC supply chain in China, foster innovation in the PC product ecosystem, accelerate the promotion of ecosystem partners' terminal products in the Greater Bay Area, and support the development of emerging industries in the region.