Intel’s CEO, Pat Gelsinger, has stepped down from his role less than four years after taking the helm of the tech giant. His resignation on December 1st comes as Intel continues its ambitious, yet challenging, effort to regain leadership in the semiconductor industry. The company, once known for producing the fastest and smallest computer chips, has struggled to keep pace with competitors, most notably Taiwan Semiconductor Manufacturing (TSMC), which has gained market dominance by manufacturing chips for rivals like Nvidia.
Under Gelsinger’s leadership, Intel launched a costly four-year plan aimed at reviving its manufacturing capabilities and reclaiming its position in the global chip market. Despite assurances from Gelsinger and company executives that the strategy is on track, the full impact of the plan will not be evident until next year. Intel is set to bring its flagship laptop chip production back to its own factories, a critical test of its turnaround efforts.
Frank Yeary, the independent chair of Intel’s board, addressed the transition in a statement, emphasizing the company’s ongoing commitment to restoring investor confidence. “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,” Yeary said.
In the wake of Gelsinger’s resignation, Intel’s stock saw a nearly 5% increase in premarket trading. However, the company’s shares have been down more than 50% this year, reflecting broader challenges in the tech sector. Intel’s poor performance led to its removal from the prestigious Dow Jones Industrial Average last month, replaced by Nvidia.
Intel has named two interim co-CEOs to lead the company through this transition: Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus. The company’s board has also established a search committee to identify a permanent successor to Gelsinger.
Intel, which employs approximately 4,900 people in Ireland, is at a pivotal moment as it seeks to regain its competitive edge in an increasingly crowded and fast-evolving semiconductor market. The outcome of its leadership change and ongoing strategy will be closely watched by investors and industry observers alike.