Intel's CEO, Pat Gelsinger, has announced his retirement after a 40-year career with the company, effective from 1st December 2024. The veteran in the chip-making industry shared a post on X (formerly Twitter), announcing his move.
According to a report by Bloomberg, this decision comes after discussions with Intel's board regarding the company's ongoing challenges, particularly its struggle to compete with Nvidia and regain market share. Reports indicate that Gelsinger was given the option to retire or be removed from his position, leading to his decision to step down.
Gelsinger rejoined Intel as CEO in February 2021, succeeding Bob Swan with a mandate to revitalise the struggling chipmaker. However, his tenure was marked by several setbacks. Intel missed the AI chip boom that significantly benefited Nvidia, failed to deliver new technologies on schedule, and faced stability issues with its CPUs. Moreover, Intel was not chosen as Microsoft's AI PC launch partner. The company's new Core Ultra 9 200S-series processors received lukewarm reviews, with Intel VP Robert Hallock acknowledging that the launch did not meet expectations.
In September, Gelsinger announced plans to spin off Intel's chipmaking business and halt the construction of semiconductor factories in Poland and Germany, following delays in the development of Intel's next-generation 18A chipmaking process. Although Intel received nearly $8 billion in US government funding for factory developments in states like Arizona and Ohio under the CHIPS and Science Act, the company reported a $7 billion operating loss in its chipmaking division for 2023. As part of cost-cutting measures, Intel announced layoffs affecting over 15,000 employees to save $10 billion.
Following Gelsinger's departure, Intel CFO David Zinsner and Intel Products CEO Michelle Johnston Holthaus will serve as co-CEOs while the board searches for a permanent replacement. Frank Yeary, an independent board chair, will assume the role of interim executive chair. In a press release, Gelsinger reflected on his time at Intel, stating, "Leading Intel has been the honour of my lifetime… 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."
As Intel looks to the future, rumours have emerged about a potential acquisition by Qualcomm, although Qualcomm CEO Cristiano Amon recently dismissed the idea, stating, "We have not identified any large acquisition that is necessary." With the impending launch of its new Arc GPUs, Intel faces pressure to regain its competitive edge amidst increasing challenges in the semiconductor industry.