Intel (INTC) shares jumped early Thursday as the chip giant appointed semiconductor industry veteran Lip-Bu Tan as its new chief executive, effective March 18.

Tan, who previously served as CEO of computational software company Cadence Design Systems (CDNS), will succeed interim co-CEOs David Zinsner and Michelle Johnston Holthaus, Intel said in a statement late Wednesday. The company's stock climbed 12% in the most recent premarket activity.

In December, the chipmaker announced the departure of former CEO Pat Gelsinger. At the time, it named Zinsner and Johnston Holthaus, who were serving as chief financial officer and CEO of Intel products, respectively, to lead the company on an interim basis. Intel also appointed Frank Yeary to the role of interim executive chair during the transition period.

Yeary will return to his previous post as independent chair of the board when Tan becomes CEO, while Zinsner and Johnston Holthaus will revert to their CFO and products head roles, the company said Wednesday. Tan was previously on Intel's board but stepped down in August last year. He will rejoin the board.

"Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO," Yeary said in the statement. "We are delighted to have Lip-Bu as our CEO as we work to accelerate our turnaround and capitalize on the significant growth opportunities ahead."

In January, Intel reported fourth-quarter adjusted earnings of $0.13 per share, down from $0.54 the year before, while revenue fell 7% to $14.26 billion. The company said at the time it expects adjusted EPS to break even in the ongoing three-month period and revenue to be in a range of $11.7 billion and $12.7 billion. The current consensus on FactSet is for breakeven non-GAAP EPS and $12.24 billion in sales.

"I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders," Tan said in the statement.