Intel is experiencing a leadership shakeup as CEO Pat Gelsinger resigns amidst struggles in the chip market.
Intel had aimed to revitalize the company's manufacturing capabilities and restore its competitive edge, but his departure comes at a time when Intel's stock has plummeted by 52% this year.
David Zinsner, Intel's CFO, and Michelle Johnston Holthaus, general manager of the client computing group, will serve as co-CEOs on an interim basis. Holthaus will also take on the role of CEO of Intel Products. Frank Yeary, an independent board member, will serve as interim executive chair.
Intel's challenges reflect broader issues in the semiconductor industry, including competition from rivals like AMD and Nvidia. Gelsinger's plans to integrate research and development with manufacturing operations may have been overly optimistic. The regulatory environment also complicates matters, with federal funding contingent on Intel maintaining a majority stake in its fabs.
Gelsinger's tenure at Intel has had both achievements and setbacks. He invested in chip manufacturing technology and secured federal grants, but the renewed Intel Foundry business has struggled.
The board faces critical decisions regarding the company's future, including the possibility of splitting the company or selling the fab business.