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Shares of the beat-up chipmaker rose 12% in premarket trading on Thursday as Intel announced Lip-Bu Tan as its permanent CEO.

Intel shares surged Thursday after the struggling chipmaker named Lip-Bu Tan its new CEO, raising hopes for a turnaround.

Lip-Bu Tan, who was born in Malaysia and went to university in Singapore, will take over as Intel's CEO on March 18. The news ...