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14. March 2025
Intel Faces Leadership Crisis As New Chief Prepares To Steer Company Out Of Turmoil
Intel’s new CEO, Lip-Bu Tan, is poised to take the reins from Pat Gelsinger, who was ousted by the board just over three months ago. The transition of power marks a significant shift for the technology giant, as it seeks to stabilize its operations and refocus on its core strengths in processor manufacturing.
Gelsinger’s departure from the CEO position was a culmination of several factors, including the company’s struggles with profitability, rounds of layoffs, and canceled or spun-off side projects. Despite his efforts to transform Intel into a foundry company that also manufactured chips for fabless third-party chip design companies, the board ultimately decided that it was time for a change.
Intel’s leadership had been under intense scrutiny in recent quarters, as the company grappled with declining sales and profitability. The struggles were compounded by increasing competition from established players like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and others, which have cornered the market on high-end semiconductor manufacturing.
The ousted CEO had envisioned a future where Intel would become a leading player in the foundry market, providing chips for companies that design and manufacture their own products. However, this plan was met with skepticism by some investors and analysts, who questioned its feasibility and potential impact on profitability.
In contrast, Tan’s tenure as CEO is likely to focus on restoring stability and confidence within the company. With his extensive experience in the technology sector, particularly through his roles on various boards, he will need to navigate a complex web of challenges, including increasing competition, rising material costs, and shifting customer demands.
Tan brings a wealth of experience to the role, having served as a member of Intel’s board from 2022 to 2024. During this time, he worked closely with the company’s leadership to develop strategies for growth and expansion in emerging markets. His expertise will be invaluable in guiding Intel through its current challenges and charting a new course for the company.
Tan’s background also includes stints on the boards of other prominent technology companies, such as Hewlett Packard Enterprise, Semiconductor Manufacturing International Corporation (SMIC), and Cadence Design Systems. These roles have given him a deep understanding of the industry’s dynamics and trends, positioning him well to make informed decisions about Intel’s future.
One of Tan’s key priorities will be to refocus Intel on its core strengths in processor manufacturing. The company has been investing heavily in advanced technologies like 5G, artificial intelligence, and autonomous vehicles, but these initiatives have not yet yielded significant returns. Under Tan’s leadership, Intel will need to strike a balance between investing in cutting-edge research and development and prioritizing profitable products.
Another critical aspect of Tan’s tenure will be the company’s relationships with its major customers and partners. Intel has faced criticism for its handling of supply chain disruptions, particularly during the pandemic. The new CEO will need to rebuild trust with key stakeholders by demonstrating a commitment to reliability and responsiveness.
Intel’s Products Group, led by Michelle Johnston Holthaus, will continue to play a vital role in driving the company’s consumer business forward. Under Tan’s leadership, Intel will focus on expanding its product portfolio, improving manufacturing efficiency, and investing in emerging technologies that can help drive growth.
David Zinsner, who served as interim co-CEO alongside Johnston Holthaus, will remain executive vice president and CFO. His experience in managing the company’s financial affairs will be essential in navigating Intel’s complex financial landscape and ensuring the company remains fiscally responsible.
The handover of power at Intel marks a significant turning point for the company. With Lip-Bu Tan at the helm, Intel is poised to embark on a new journey of growth, innovation, and stability as the technology sector continues to evolve rapidly. A key aspect of this strategy will be the company’s ability to balance short-term financial goals with long-term investments in emerging technologies.
As Intel looks to the future, it is clear that Tan’s experience and expertise will be crucial in navigating the company through its current challenges and charting a new course for growth and success. With his deep understanding of the industry and its trends, Tan is well-equipped to make informed decisions about Intel’s future and drive long-term value creation for shareholders and customers alike.