Intel Corp. CEO Pat Gelsinger has retired from the company and has stepped down from the board of directors effective immediately.
The move comes as Intel is under incredible pressure from external and internal forces after several rounds of layoffs and delays in its attempt to expand semiconductor manufacturing in the U.S.
The delays include a postponement of its German double fab in Madgeburg and delaying of the twin semiconductor fabs in Ohio due to downturns and delays in subsidies through the CHIPS and Science Act. It may also pause investment plans in other European countries as well.
Forced out?
According to a report from Reuters, Gelsinger left a board meeting last week where the directors felt that his plans to turn Intel around were not working and change was not happening fast enough. The board apparently left Gelsinger with a choice to be removed or retire. He chose the latter.
One of the major plans from Gelsinger was to improve U.S. domestic semiconductor manufacturing, a plan backed up by the Biden Administration with its CHIPS and Science Act designed to improve home-grown chipmaking. The goal was to compete with the major foundries in the market like leader Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Foundry.
It is unclear where the company will go from here, specifically with the Intel Foundry portion of the business which just finalized less than $8 billion in direct funding through the CHIPS Act. Gelsinger said the plans remain on track, but it won’t be fully known until later next year.
Replacement hunt
While the company conducts a search for a new CEO, David Zinsner and Michelle Johnston Holthaus will serve as co-CEO. Zinsner is currently the executive VP and CFO of Intel and Holthaus has been appointed to CEO of Intel Products — a new position that will lead Intel’s Client Computing Group, Data Center and AI Group and Network and Edge Group.
Frank Yeary, independent chair of the board at Intel, will become interim executive chair during the transition.
Semiconductor career
Gelsinger began his career at Intel in 1979 where he rose through the ranks to eventually become its first chief technology officer.
Throughout his tenure at Intel, he served in a variety of roles driving innovation and playing a role in focusing on growing the company’s business in chipmaking, memory, artificial intelligence and more.
“Leading Intel has been the honor of my lifetime – this group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague,” Gelsinger said. “Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together. It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family.”
