Intel CEO Pat Gelsinger has announced his retirement, the company revealed on Monday. This decision comes after a challenging period for the chip industry pioneer, which has struggled to maintain its competitive edge in the AI era, with companies like Nvidia leading the market.
In response to Gelsinger’s departure, Intel has appointed Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs. They will lead the company while the board conducts a comprehensive search for a new permanent CEO.
Following the announcement, Intel’s shares saw a nearly 5% increase in pre-market trading. However, it is important to note that the company’s stock has lost more than half of its value over the past year.
Gelsinger took on the role of CEO in 2021 with the mission of transforming Intel. The company, once a leader in the US semiconductor industry, had lost its manufacturing dominance to competitors like Taiwan’s TSMC.
Frank Yeary, the independent chair of Intel’s board, commented on the situation in a press release:
While we have 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.
During Gelsinger’s tenure, Intel embarked on an ambitious and costly turnaround strategy. This strategy focused on transforming Intel into a contract manufacturer for other chip companies and revitalizing its technological leadership.
To find Gelsinger’s successor, Intel’s board has established a search committee dedicated to identifying and appointing the next CEO.
