Lip-Bu Tan is seen as a “transformative” leader who will move to cut costs. But both halves of Intel’s business require major fixes.

Intel (INTC) stock opened about 15% up on Thursday, March 13 after the struggling chipmaker said industry veteran Lip-Bu Tan will assume the role of chief executive on March 18. Tan previously served on the board and has most recently served as the chief executive of Cadence Design Systems (CDNS).

A veteran of the semiconductor industry, Lip-Bu Tan has an even longer track record as a technology investor, particularly in Chinese companies.