Intel Corporation has appointed former SK Hynix and SK On chief executive Seok-Hee Lee as executive vice president of its contract chip-manufacturing business, Intel Foundry. Lee will report directly to CEO Lip-Bu Tan and oversee advanced packaging, system integration, back-end technology development, and back-end manufacturing. This strategic move establishes advanced packaging as a focused business unit to address the growing complexity and importance of packaging in AI systems.

Strategic Focus on Advanced Packaging

The appointment reflects the evolving Intel Foundry strategy, positioning advanced packaging as a key enabler for performance, power efficiency, and heterogeneous integration. "Advanced packaging and system integration are becoming defining capabilities for next-generation computing systems," said Lip-Bu Tan, Intel CEO. He highlighted Lee's expertise in leading complex, high-scale technology and manufacturing organizations as critical for scaling technologies like EMIB-T and HBI to high volume.

Leadership Changes and Responsibilities

As part of the restructuring, Executive Vice President Naga Chandrasekaran will concentrate on front-end technology development and manufacturing, with a focus on accelerating production of the company's 18A, 14A, and future process technologies. His focus remains on accelerating the ramp of these nodes, alongside design enablement and customer-facing functions. This operating model aims to reinforce Intel's commitment to delivering speed, consistency, and predictability for customers and partners.

Executive Profile and Transition

Lee joins Intel from SK On, where he served as president and CEO, and previously held the same role at SK Hynix. A semiconductor veteran, he has also held engineering leadership roles at Intel and in academia. "Intel Foundry has a significant opportunity ahead, and I look forward to partnering with Naga and the entire Intel Foundry leadership team," said Lee. Additionally, executive vice president Navid Shahriari will retire after a distinguished 37-year career at the company.

Foundry Initiatives and Partnerships

The leadership change follows several recent foundry initiatives. In April, Intel hired former Samsung foundry executive Shawn Han to support its manufacturing efforts. The company also secured Tesla Inc. as the first major customer for its next-generation 14A process, which is expected to enter mass production in 2029. Furthermore, President Donald Trump announced that Apple Inc. has agreed to work with Intel to design and manufacture chips in the U.S., potentially providing a major boost to Intel's contract manufacturing business.

Financial and Market Impact

In August, the U.S. government invested $8.9 billion in Intel, purchasing 433.3 million shares at $20.47 each and securing a 9.9% passive ownership stake under the CHIPS Act and Secure Enclave initiatives. Shares of INTC surged 10.64% to close at $133.99 on Thursday and edged up another 0.13% to $134.16 in after-hours trading. According to Benzinga Edge Stock Rankings, Intel's Momentum score sits in the 99th percentile, indicating strong price performance across short, medium, and long-term periods.

CNBC's Jim Cramer named Intel his favorite stock on Wednesday, citing rising demand for CPUs as companies scale artificial intelligence services and infrastructure. Cramer described semiconductors as the "best area of the complex" and stated Intel "will work" in a post on X. The endorsement highlights the potential for Intel's core business to capitalize on the expanding AI landscape.

Agentic AI Could Fuel CPU Growth

Cramer argued on his show, Mad Money, that the market is underappreciating the importance of CPUs in AI systems. He projected that demand could increase significantly as AI deployments scale. "We're going to need a ton of CPUs," Cramer said, referencing Intel CEO Lip-Bu Tan's belief that the ratio of CPUs to GPUs in AI infrastructure could rise substantially.

Cramer cited projections that the industry could shift from a ratio of one CPU for every eight GPUs to as many as four CPUs for every GPU. "CPUs are Intel's bread and butter," Cramer noted, emphasizing the strategic importance of this shift for the chipmaker.

US Manufacturing Opportunity

Intel's foundry business stands to gain as companies invest billions in AI infrastructure and seek additional sources of advanced chip manufacturing capacity. Cramer pointed to growing geopolitical concerns prompting customers to look beyond Taiwan Semiconductor Manufacturing Co Ltd. This diversification creates a significant opening for Intel's expanding foundry operations.

Turnaround Under Lip-Bu Tan

Cramer attributed the resolution of many issues that previously weighed on Intel to the leadership of CEO Lip-Bu Tan. Since taking over in March 2025 when the stock traded around $25, Intel shares have surged about 370%. The stock is up more than 480% over the past year and 228% year to date.

The chipmaker's outlook is supported by several tailwinds, including Nvidia's $5 billion investment, the U.S. government's nearly 10% stake, and Tesla Inc's plans to use Intel's next-generation manufacturing process for chips at Terafab in Austin. Cramer advised investors to focus on where Intel is headed rather than past gains, concluding, "when it comes to Intel, I think the answer is up."

Key Stock Performance Metrics

Intel's shares closed 3.46% higher on Wednesday at $121.10 and rose an additional 2.68% in extended trading. Benzinga Edge Stock Rankings indicate Intel stock has a Momentum score in the 99th percentile with a positive price trend across short, medium, and long-term periods.