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

Intel shares powered higher in early Thursday trading after the struggling chipmaker named industry veteran and former board member Lip-Bu Tan as its new CEO, sparking a fresh round of speculation on its plans to split into two separate companies.

Intel ( INTC) named Lip-Bu Tan its new CEO, sending the chipmaker's stock higher in after-hours trading Wednesday. Tan, who is set to take the helm of Intel as of next Tuesday, is the former CEO of Cadence Design Systems ( CDNS ), a semiconductor software company that counts Intel among its partners.