Ayala-led Integrated Micro-electronics Inc. is not renewing Arthur R. Tan as chief executive officer when his term expires on 25 April this year.
Tan has been with the IMI in various leadership roles the past 22 years.
In a special board meeting on Tuesday, the IMI board approved the CEO transition plan that identified, and vetted Lou Hughes as candidate for the role of chief executive.
“Mr. Hughes, a highly experienced professional with extensive global C-suite experience in sales, engineering, sourcing and operations, will be nominated to succeed Art as CEO of IMI,” the company said.
Hughes was previously senior manager at General Electric; COO at Universal Electronics, a Nasdaq listed EMS company; and CEO at Beyonics, a contract manufacturer headquartered in Singapore.
Hughes will assume his position as CEO of IMI on May this year.
“IMI’s board of directors is confident that Mr. Hughes will lead IMI with the same level of dedication, innovation, and excellence that is expected by our customers and stakeholders and assures its stakeholders of IMI’s commitment to maintaining operational continuity and delivering value during this transition period.
“IMI will continue to uphold the highest standards of corporate governance and transparency throughout this process,” the company said.
Tan is recognized as the driving force behind IMI’s transformation from a Philippines-based contract manufacturing company catering to mostly Japanese original equipment manufacturers to one of the top 25 Global EMS or electronic manufacturing services and top 10 Global Auto EMS players with extensive capabilities and operations serving global tier-1 and OEM customers.
In nine months of 2023, the company reported a narrower loss of $85.26 million, deeper than the previous year’s loss of $4.07 million. The company said this includes losses from STI Limited as IMI worked on closing the divestment transaction with Rcapital.
Revenue fell 3 percent to $340.75 million from the previous year’s $351.24 million. The drop in demand was traced to the general slowdown across the electronics industry with companies tightening working capital levels amidst excess inventory in the supply chain, the company said.
