Key Takeaways
Less than four years after he was appointed to lead Intel, Pat Gelsinger has been forced out by the company’s board, who were reportedly disappointed by his failure to turn the struggling chipmaker around.
With Intel stock down over 60% since Gelsinger took the helm, his replacement will inherit a company in crisis and will face some difficult decisions from the get-go.
Gelsinger, who took the helm in 2021, was tasked with revitalizing Intel amid fierce competition from rivals, which it faces on two fronts.
On one hand, Intel competes with dedicated chip foundries like the Taiwan Semiconductor Manufacturing Company (TSMC). On the other, fabless chip designers have encroached on Intel’s traditional territory by outsourcing manufacturing.
Gelsinger’s approach was to invest heavily in new manufacturing techniques, hoping that Intel could overtake TSMC as the world’s preeminent manufacturer of advanced chips.
However, as reported by Reuters, Intel’s board determined last week that Gelsinger’s costly and ambitious plan wasn’t working and asked him to step down.
Following Gelsinger’s departure, Intel has appointed Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus as interim co-CEOs.
Both leaders bring extensive experience and diverse perspectives to the table as the company searches for a permanent successor.
Zinsner, Intel’s CFO since 2022, has been instrumental in the company’s recent cost-cutting measures and financial restructuring efforts.
Known for his pragmatic approach to operational efficiency, Zinsner has played a key role in guiding Intel’s financial outlook during turbulent times.
Meanwhile, Holthaus, a seasoned Intel veteran, oversees the Client Computing Group, the company’s largest revenue-generating division.
Her deep understanding of Intel’s product portfolio and customer relationships positions her as a stabilizing force during the transition period.
Since its founding in 1968, Intel has almost always recruited its chief executives internally. Given the technical nature of Intel’s operations and complex group structure, this approach makes a lot of sense.
Past CEOs, including Gelsinger, spent decades at the company before they ascended to the top job. (Although Gelsinger did spend a stint as the CEO of VMware between 2009 and 2021).
While Intel may remain open to hiring someone from outside the company, internal experience will also be highly valued.
With Intel’s search for a new CEO underway, two names have surfaced as potential candidates.
Citing people familiar with the matter, Bloomberg and Reuters reported on Wednesday, Dec 4, that Marvell Technology CEO Matt Murphy and veteran technology leader Lip-Bu Tan are both being considered for the role.
An external candidate with no prior experience at Intel is currently the Chief Executive of Marvell, an American semiconductor manufacturer that produces chips for data centers. He has also served on the boards of eBay and the Global Semiconductor Alliance.
Meanwhile, Tan spent two years on Intel’s board of directors between 2022 and 2024. He was previously the CEO of Cadence and has sat on the boards of Hewlett-Packard, Softbank, and Semiconductor Manufacturing International Corporation, among others.
Whoever Intel’s board selects as the firm’s next CEO, it will reflect its priorities as it navigates an era of technological and geopolitical disruption.