Intel’s chief executive Pat Gelsinger has unexpectedly resigned from his position, concluding a turbulent four-year tenure marked by the company’s struggle to maintain its competitive edge in the semiconductor industry.
The Silicon Valley giant announced on Monday that David Zinsner and Michelle Johnston Holthaus would serve as interim CEOs until a permanent replacement is found. The 63-year-old Gelsinger described his departure as “bittersweet,” acknowledging the challenging year faced by the organisation.
The once-dominant chipmaker has witnessed a dramatic decline in its market position. Intel’s market capitalisation has plummeted below £100 billion, losing nearly half its value in 2024 alone. This stark contrast becomes even more apparent when compared to rival Nvidia, whose shares have soared over 200 per cent in the same period, reaching a staggering market capitalisation of £3.35 trillion.
Gelsinger’s ambitious five-year strategy to transform Intel into a chip manufacturing powerhouse rivalling Taiwan Semiconductor Manufacturing Company has failed to gain significant traction. The plan to manufacture chips for other companies struggled to attract substantial customers, despite massive investments in US and European facilities.
The company recently secured a £7.9 billion grant from the US government under the 2022 Chips Act for new plants across America. However, a planned £30 billion factory project in Germany was suspended earlier this year amidst widespread cost-cutting measures.
Under new leadership, Intel may consider more dramatic restructuring options, including potential asset sales. The appointment of Johnston Holthaus to head the newly created Intel Products unit, overseeing AI, data centre, and client computing groups, signals a strategic shift as the company attempts to regain its footing in the rapidly evolving semiconductor landscape.
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