Intel CEO Pat Gelsinger Resigns After Difficult Stint at the Company
Intel on Monday announced that CEO Pat Gelsinger has resigned, effective December 1. Gelsinger had taken over as CEO in February 2021, returning to the company after a stint as CEO of software giant VMWare.
During his tenure, the company’s prospects continued to decline, with the stock plunging 61%. Intel’s struggles were evident in its failure to capitalize on the AI boom and its inability to regain its position as a leading chipmaker. The company has been surpassed by its rivals, including Nvidia, which has seen its stock surge nearly 720% over the past two years.
Intel’s struggles have led to questions about a potential takeover by a rival, such as Qualcomm, which may be more likely under the incoming Trump administration, which is expected to be less aggressive in pursuing antitrust concerns.
Gelsinger will be replaced by interim co-CEOs David Zinsner, Intel’s chief financial officer, and Michelle (MJ) Johnston Holthaus, general manager of Intel’s client computing group. Holthaus has also been named CEO of Intel Products, which will oversee the company’s data center and AI product efforts.
Frank Yeary, Intel’s independent board chair, praised the company’s progress in regaining manufacturing competitiveness but acknowledged that there is much work to be done to restore investor confidence. Yeary said that the new co-CEOs will prioritize simplifying and strengthening the company’s product portfolio, advancing manufacturing and foundry capabilities, and optimizing operating expenses and capital.
The company’s new direction comes as it faces a critical period in its efforts to transition its business model to manufacture processors for competitors like Apple, putting it into more direct competition with chipmaking giant TSMC. This effort is part of a push by the Biden administration to revitalize chip manufacturing on American soil. However, the company’s progress has been dogged by delays, and it recently announced that an $8.5 billion grant from the Biden administration would be cut to $7.86 billion after Intel delayed its timeline for investing in and opening new plants.
