- Intel CEO Pat Gelsinger retired on Sunday, ending a career spanning over 40 years in the tech industry.
- Intel has appointed David Zinsner and Michelle Johnston Holthaus as interim co-CEOs following Pat Gelsinger’s retirement.
What happened
Pat Gelsinger, CEO of Intel, announced his retirement effective December 1, 2024. It makes the end of a transformative but challenging tenure. He rejoined Intel in 2021 after leading VMware and embarked on an ambitious strategy to revitalize the company, including the IDM 2.0 initiative, which emphasized in-house manufacturing and new foundry services. Significant investments were made to expand manufacturing capacity, aligning with U.S. government initiatives like the CHIPS Act. However, Intel faced enduring challenges, including technological delays, declining market share, and missed opportunities in the artificial intelligence sector. While there was progress, such as advancements in 18A process technology and EUV lithography, Intel struggled to compete with rivals like NVIDIA and AMD. Financial difficulties, including layoffs and a sharp fall in stock value, compounded the challenges.
Following Gelsinger’s departure, Intel’s Chief Financial Officer, David Zinsner, and Michelle Johnston Holthaus, head of Intel Products, have been named interim co-CEOs. While the board searches for a permanent successor.
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Why it is important
Pat Gelsinger impacted the company during a turbulent period for the company. Rejoining in 2021, Gelsinger aimed to revitalise Intel with ambitious plans, including the IDM 2.0 strategy, which focused on in-house manufacturing and expanding foundry services. Despite this, Intel faced setbacks, such as technological delays and challenges in catching up with competitors like NVIDIA and AMD, particularly in the growing artificial intelligence market. Under Gelsinger, Intel also pursued large investments in manufacturing, aligning with government initiatives like the CHIPS Act. However, Intel struggled with declining profits, missed opportunities, and a sharp drop in stock price.
His departure highlights broader challenges in the semiconductor industry, with Intel failing to regain its dominant position despite substantial efforts. This leadership change marks a critical moment as Intel transitions to new leadership while aiming to adapt to a rapidly evolving market.
