Intel CEO Pat Gelsinger steps down

Pat Gelsinger, CEO of battered chipmaker Intel, yesterday retired from the company. CFO David Zinsner and Michelle Johnston (MJ) Holthaus, who leads Intel’s Products group, have been appointed as interim chiefs while the board of directors searches for a new top executive. “With Dave and MJ’s leadership, we’ll continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while optimizing our operating expenses and capital. We’re working to create a leaner, simpler, more agile Intel,” comments Frank Yeary, who serves as interim chair of the board.

Company veteran Gelsinger rejoined Intel in 2021 to get the firm back on track after a number of slips. He announced an ambitious plan to simultaneously regain technological leadership and start manufacturing operations for external customers. Whether these efforts will pay off hinges on the success of the upcoming 18A node. Intel will have to demonstrate that it can manufacture chips that can compete in terms of performance and cost, while also convincing customers to come on board.

Gelsinger’s approach has drawn criticism that he postponed tough decisions for too long. Only last August, after a string of poor quarterly financial reports, did he announce a restructuring operation, the biggest since the company’s pivot from memory to microprocessor products in the 1980s, Gelsinger said. Investors also lament that Intel has failed to capitalize on the AI boom.

“While we’ve made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence. As a board, we know first and foremost that we must put our product group at the center of all we do. With MJ’s permanent elevation to CEO of Intel Products along with her interim co-CEO role of Intel, we’re ensuring the product group will have the resources needed to deliver for our customers. Ultimately, returning to process leadership is central to product leadership, and we’ll remain focused on that mission while driving greater efficiency and improved profitability,” says Yeary.