Intel’s CEO Pat Gelsinger has stepped down in a surprising turn of events, marking another chapter of turbulence for the U.S.-based semiconductor giant. Gelsinger’s departure, effective December 1, ended a tenure of less than four years, during which he aimed to restore Intel’s competitive edge in chip manufacturing.
A Forced Resignation
According to Intel’s statement, Gelsinger’s resignation followed a board meeting where directors expressed dissatisfaction with the pace of his ambitious turnaround plan. Despite assurances to investors and U.S. officials about the company’s manufacturing revival, progress has been slower than anticipated. The board reportedly gave Gelsinger an ultimatum: retire or face removal. Opting to resign, Gelsinger leaves unfinished a roadmap designed to reclaim Intel’s dominance in producing cutting-edge semiconductors.
Intel’s Struggles
Founded in 1968, Intel was once synonymous with Silicon Valley’s technological supremacy. However, under Gelsinger’s leadership, the company has continued to lose ground to competitors like Taiwan Semiconductor Manufacturing Co. (TSMC) and Nvidia. Nvidia’s recent displacement of Intel on the Dow Jones Industrial Average underscores the shift in the semiconductor industry.
Financial woes have exacerbated Intel’s challenges. The company posted a staggering $16.6 billion loss in the most recent quarter, halting its dividend and slashing 15% of its workforce—amounting to around 15,000 jobs. Intel’s market value has also plummeted by 60% since Gelsinger assumed leadership in early 2021.
Leading Intel has been the honor of my lifetime. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family and can look back with pride at all that we have accomplished together. Thank you all!
David Zinsner, Intel’s Chief Financial Officer, and Michelle Johnston Holthaus, the head of Intel Products, have been appointed interim co-CEOs. The board’s independent chair, Frank Yeary, will serve as interim executive chair while Intel searches for a permanent replacement.
Gelsinger’s exit comes as Intel faces critical decisions about its future. Under his tenure, the company focused on expanding its U.S. chip manufacturing capabilities, supported by billions in government subsidies through the CHIPS Act. These investments include a $20 billion chipmaking facility in Ohio and additional expansions in Europe to reduce reliance on Asian suppliers.
Legacy and Challenges Ahead
Pat Gelsinger, a 40-year veteran of the tech industry, described his departure as “bittersweet,” reflecting pride in his contributions but acknowledging the difficulties Intel has faced. His vision centred on building Intel’s foundry business—producing chips designed by other firms to compete with TSMC. Yet, this ambitious pivot has yet to bear fruit.
While Intel struggles, competitors like Nvidia have surged ahead, dominating the market for artificial intelligence chips. TSMC remains the leader in advanced semiconductor manufacturing, widening the gap between itself and Intel.
Gelsinger’s resignation highlights Intel’s ongoing identity crisis. The company must balance its dual role as a designer and manufacturer of chips while navigating financial setbacks and fierce global competition. The leadership transition could set the tone for Intel’s next phase as the company seeks to regain relevance in a rapidly evolving industry.
As the search for a new CEO begins, industry observers and stakeholders are left questioning whether Intel can reclaim its standing as a pioneer in semiconductor technology or continue to lag behind its more agile rivals even with the Chips Act.
