Intel CEO Pat Gelsinger resigns

Intel CEO Pat Gelsinger resigned on Sunday after less than four years in charge, following board concerns about the slow progress of his turnaround plan, Bloomberg reported. 

In 2021, when Gelsinger became the company’s chief executive, he was tasked with turning the PC chip manufacturer into the industry leader again. But by then, Intel had missed out on opportunities like making smartphone chips.

Then came AI and the semiconductor chip boom, and the company that was once known to have its chip inside every computer hit snooze on that opportunity as well, losing market share to Advanced Micro Devices, Taiwan Semiconductor Manufacturing Company and Nvidia.

Weak PC demand exacerbated the company’s woes. Intel’s stock has dropped over 60% during Gelsinger’s tenure, shrinking its value to under $100 billion, while Nvidia surged to a $3 trillion valuation.

Ambitious plans fall short
The 63-year-old Gelsinger spearheaded ambitious goals, including building US factories and restoring Intel’s leadership in chip production.

He focused on transforming Intel into a contract manufacturer, committing $20 billion to new factories in Ohio and increasing its workforce to 132,000.

Then, the Biden administration announced incentives of up to $7.8 billion under the CHIPS Act, which added pressure for results.

Future direction
Interim co-CEOs David Zinsner and Michelle Johnston Holthaus now lead Intel while the search for a permanent successor begins. The company faces an uphill battle to restore investor confidence and manufacturing dominance.