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Intel has Announce CEO Pat Gelsinger has retired effective December 1, and has resigned from the company’s board of directors.
Intel executives David Zinsner and Michele Johnston-Holthaus have been named interim co-CEOs. Zinsner is Intel’s chief financial officer, while Holthaus is general manager of Intel’s customer computing group.
Holthaus was also named to the newly created position of CEO of Intel Products, a division that includes the chipmaker’s customer computing group as well as its data center, artificial intelligence, networking and edge businesses.
Frank Jeri, Independent Chairman of Intel’s Board of Directors, will become interim CEO during the transition period. Intel says the leadership structure at Intel Foundry, its chip design and manufacturing organization, has not changed, and that Intel’s board of directors has formed a search committee to find a permanent successor to Gelsinger.
“Leading Intel has been the honor of my life — this group of people is among the best and brightest in the industry, and I am honored to count each one of them as a colleague,” Gelsinger said in a statement. “Today is, of course, bittersweet, because this company has been my life for the better part of my career. I can look back with pride at all we have accomplished together. It has been a challenging year for all of us as we made difficult but necessary decisions to position Intel at Current Market Dynamics I am forever grateful to the many colleagues around the world with whom I have worked as part of the Intel family.
Gelsinger first joined Intel when he was 18 years old after earning his associate’s degree from Lincoln Tech. He was the principal architect of Intel’s fourth generation 80486 processor, which was introduced in 1989. At age 32, he was named the youngest vice president in Intel’s history.
Gelsinger became Intel’s CTO in 2001, where he led major technology advances including Wi-Fi, USB, and the Intel Core and Intel Xeon processor lines. In 2009, he left to join EMC as president and CFO, becoming CEO of VMware in 2012.
Gelsinger returned to Intel as CEO as the company found itself under pressure from activist investors to reorganize. He launched an ambitious five-year course correction, greenlighted the construction of new multibillion-dollar chip manufacturing megafabs in the United States and abroad, and stated Intel’s ambition to catch up with Taiwanese chipmaker TSMC and Korean chipmaker Samsung by 2018. The end of the decade.
Gelsinger also pushed Congress to support chip manufacturing in the United States. In November, the US Department of Commerce awarded Intel up to $7.86 billion through a funding bill, the CHIP Act, to boost Intel’s commercial semiconductor manufacturing in Arizona, New Mexico, Ohio and Oregon.
But Gelsinger often faltered, struggling to deliver on his promises.
Gelsinger It is said TSMC took offense by pointing out Taiwan’s unstable relations with China, resulting in Intel losing rebates from the chip manufacturer. He was overly optimistic about the ability of Intel’s AI chips, like Gaudi’s, to compete against the products of competitors like Nvidia. His efforts to turn Intel into a chip maker for other companies ran into technical problems.
By early 2022, Intel’s revenue from PC chips fell 25% in the second quarter of 2022, losing chip sales in data centers to competition from AMD. A deal to supply chips to Waymo, Alphabet’s self-driving car division, Fell through. (A few years later, Intel lost another major potential customer, Sony, after failing to reach an agreement to manufacture chips for the company’s next PlayStation console.) Gelsinger announced pay cuts — and cut his own pay.
In 2023, Intel canceled its bid to buy Israeli company Tower Semiconductor for $5.4 billion due to regulatory hurdles, forcing Intel to pay a termination fee of $353 million.
Intel’s 18A chip manufacturing process – intended to bring significant new business to the company – has become a liability after failing to meet reliability expectations. Apple and Qualcomm have skipped 18A for technical reasons, and Intel is not expected to start mass producing 18A chips until 2026.
In early fall, Intel took steps to turn Intel Foundry into an independent subsidiary — a move long championed by shareholders — as it announced a handful of customer wins, including with AWS (which plans to use its own 18A process) and the Pentagon.
Intel’s revenues will shrink to $54 billion in 2023, down about a third from the year Gelsinger took over. The company cut its dividend, pledged to restructure and cut more than 15,000 jobs in a $10 billion cost-cutting plan, and halted or delayed construction work at several chipmaking facilities.
Analysts expect Intel to lose $3.68 billion this year, its first annual net loss since 1986. The chipmaker has reportedly considered selling its self-driving arm Mobileye and its enterprise networking division, and bidders, including… That’s Qualcomm, they have approached the company about an acquisition.
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