Pat Gelsinger Retires as Intel CEO After Four Decades of Service

Pat Gelsinger, Intel's CEO, has officially stepped down after a 40-year career at the semiconductor giant. Effective December 1, 2024, his retirement follows intense discussions with the company’s board about its ongoing struggles, particularly in competing with industry leader Nvidia. Gelsinger shared his decision through a post on X (formerly Twitter).

Gelsinger returned to Intel in February 2021 to replace Bob Swan, who was tasked with revitalizing the company. Despite his extensive experience, his tenure faced major hurdles. Intel fell behind in the AI chip boom that catapulted Nvidia’s success, struggled with delays in delivering cutting-edge technologies, and faced criticism for the stability of its CPUs. Adding to the challenges, Intel failed to secure a partnership for Microsoft's AI PC launch, and its latest Core Ultra 9 200S-series processors underperformed, with Intel VP Robert Hallock admitting the launch did not meet expectations.

The situation worsened when Intel reported a $7 billion operating loss in its chipmaking division for 2023. Even with $8 billion in government support under the CHIPS and Science Act, Intel had to cancel the construction of semiconductor factories in Europe and announced layoffs affecting over 15,000 employees to cut costs. The company’s decision to spin off its chipmaking business and delays in its 18A chip manufacturing process have only added to its woes.

With Gelsinger’s exit, Intel CFO David Zinsner and Intel Products CEO Michelle Johnston Holthaus will assume co-CEO roles as the board searches for a permanent successor. Frank Yeary, independent board chair, will temporarily step in as executive chair. Gelsinger reflected on his time, saying, "Leading Intel has been the honour of my lifetime… It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics."

Qualcomm CEO Cristiano Amon, said, “We have not identified any large acquisition that is necessary.” Meanwhile, Intel is gearing up for the launch of its Arc GPUs, a move seen as critical for reclaiming lost market share in the fiercely competitive semiconductor industry.

Intel’s future remains uncertain as it faces mounting pressure to innovate and compete in a rapidly evolving landscape.

Also Read: