Intel CEO Pat Gelsinger Steps Down Amid Chip Industry Challenges Intel CEO Pat Gelsinger has stepped down due to the company’s struggles to match the success of its rivals in the semiconductor chip industry. The Biden administration is planning to reduce part of Intel’s $8.5 billion in federal funding for computer chip plants across the country, with a portion of the funding being used to provide computer chips to the military. In an attempt to improve competitiveness, Intel has announced plans to cut 15% of its workforce (around 15,000 jobs). Interim co-CEOs David Zinsner and Michelle Johnston Holthaus will take over.
Background and Context
Key Points
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He was first appointed as chief technology officer at Intel in 1979 and later returned as CEO in 2021.
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The company will conduct a search for a new CEO, with interim co-CEOs David Zinsner and Michelle Johnston Holthaus taking over.
Challenges Faced by Intel
Despite the high demand for semiconductor chips, Intel has struggled to match the success of its rivals, such as Nvidia and AMD. The company has announced plans to cut 15% of its workforce (around 15,000 jobs) in an attempt to turn its business around.
Changes to Federal Funding
The Biden administration is planning to reduce part of Intel’s $8.5 billion in federal funding for computer chip plants across the country. However, this reduction is largely due to the fact that a portion of the funding ($3 billion) will be used to provide computer chips to the military.
Leadership Transition
David Zinsner and Michelle Johnston Holthaus have been named as interim co-CEOs, while Frank Yeary, independent chair of Intel’s board, will become interim executive chair.
Background on Pat Gelsinger
Pat Gelsinger has been part of Intel for over 40 years, starting his career at the company in 1979. He was the first chief technology officer and returned as CEO in 2021. During his tenure, Gelsinger helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing.
Reasons for Retirement
The reasons behind Gelsinger’s retirement are not explicitly stated in the provided context. However, it is mentioned that Intel has struggled to match the success of its rivals despite high demand for semiconductor chips.
Interim Co-CEOs Appointed
Reduction in Federal Funding
Company’s Financial Struggles
Key Takeaways
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Intel is receiving a reduction in federal funding, largely due to receiving $3bn for providing computer chips to the military.
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The company has announced plans to cut 15% of its workforce (around 15,000 jobs) in an attempt to improve competitiveness.
- theguardian.com | Intel CEO Pat Gelsinger retires amid chipmaker’s struggles
