Intel on Wednesday named former board member and chip industry veteran Lip-Bu Tan as its CEO and signaled the struggling but storied chipmaker was unlikely to split up its chip-design and manufacturing operations.

Shares of Intel Corp. jumped 15% after the company named Lip-Bu Tan as its next chief executive officer, entrusting a former board member and semiconductor veteran with one of the toughest jobs in the chip industry.

Intel named Lip-Bu Tan as its new chief executive, selecting a former board member and longtime industry executive to help turn itself around. Shares stood 15% higher in midday trading. 🔎 Dig deeper

Shares of Intel closed 14% higher on Thursday, as Wall Street cheered its decision to name former board member Lip-Bu Tan as CEO, who left in August over differences about the chipmaker's direction, after several years of market underperformance.

Shares of Intel Corp. jumped the most in five years after the company named Lip-Bu Tan as its next chief executive officer, entrusting a former board member and semiconductor veteran with one of the toughest jobs in the chip industry.

Shortly after Intel announced his hiring Wednesday afternoon, new CEO Lip-Bu Tan greeted the chipmaker’s employees on a conference call promising a “new Intel” focused on pleasing customers and shareholders.

Incoming Intel CEO Lip-Bu Tan brings "instant credibility" that should help restore investor confidence and support the company's efforts to become a major contract chipmaker, Wall Street analysts said on Thursday.

Intel has appointed Lip-Bu Tan as its CEO. The American chipmaker was without a chief executive for three months after Pat Gelsinger was ousted in