Intel CEO Pat Gelsinger has resigned, leading to David Zinsner and Michelle Johnston Holthaus being named interim co-CEOs. Despite an increased demand for semiconductor chips and improved profitability, Intel has struggled to keep up with its competitors.
Mr. Gelsinger, with a career spanning over 40 years, also stepped down from the board of directors. He joined Intel in 1979, serving as the first chief technology officer, and returned as CEO in 2021. Intel announced plans on Monday to search for a new CEO.
Recently, it was revealed that the Biden administration intends to reduce some of Intel’s $8.5 billion federal funding for computer chip factories nationwide. Sources familiar with the situation disclosed this information anonymously.
The reduction is partly due to the $3 billion Intel receives for supplying computer chips to the military. In March, Joe Biden announced a deal to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans.
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The changes in Intel’s funding are not linked to its financial performance or milestones, according to sources familiar with the grant. In August, the company announced a workforce reduction of 15%, affecting around 15,000 employees, as part of its efforts to enhance competitiveness against leading competitors like Nvidia and AMD. Unlike some rivals, Intel both designs and manufactures chips.
Mr. Zinsner is Intel’s executive vice president and CFO, while Mr. Holthaus has been assigned the new CEO position overseeing Intel Products, including the Client Computing Group, Data Center and AI Group, and Network and Edge Group.
Frank Yeary, the independent chairman of Intel’s board of directors, will serve as interim executive chairman.
“Pat’s tenure at Intel began crucially and his return in 2021 came at a pivotal time for the company,” Yeary stated. “As a leader, Pat has driven innovation throughout the company, particularly in cutting-edge semiconductor manufacturing.”
Source: www.theguardian.com
