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Former CEO Blasts Intel's 'Decay': 'We Don't Know How To Engineer Anymore' (ft.com)

(Monday December 01, 2025 @11:41AM (msmash) from the no-mercy dept.)


Pat Gelsinger, the former Intel CEO who was [1]pushed out in late 2024 during a five-year turnaround effort, told the Financial Times that the "decay" he found when he returned to the company in 2021 was " [2]deeper and harder than I'd realized ." In the five years before his return, "not a single product was delivered on schedule," he said. "Basic disciplines" had been lost. "It's like, wow, we don't know how to engineer anymore!"

Gelsinger was also unsparing about the Biden administration's implementation of the 2022 Chips Act, legislation he spent more time lobbying for than any other CEO. "Two and a half years later [and] no money is dispensed? I thought it was hideous!" There's what Gelsinger carefully calls "a touch of irony" in how things played out.

Intel's board forced him out four years into a five-year plan, then [3]picked successor Lip-Bu Tan -- who Gelsinger says is following the same broad strategy. Tan has kept Intel in the manufacturing game and delivered the 18A process node within the five years Gelsinger originally promised. Asked what went wrong, Gelsinger conceded he was "very focused on managing 'down'" and should have managed "up" more. He also would have pushed harder for more semiconductor expertise on the board, he said.



[1] https://tech.slashdot.org/story/24/12/02/1427231/intel-ceo-gelsinger-exits-as-chip-pioneers-turnaround-falters

[2] https://www.ft.com/content/0b394037-65c0-4664-9b40-10115a2c55c0

[3] https://slashdot.org/story/25/03/12/2118219/intel-appoints-lip-bu-tan-as-ceo



Miracles (Chips, how do they work?) (Score:3, Insightful)

by Pseudonymous Powers ( 4097097 )

"Pat Gelsinger, the former Intel CEO who was pushed out in late 2024 during a five-year turnaround effort, told the Financial Times that the "decay" he found when he returned to the company in 2021."

Gee, maybe you should have used that three-plus years to hire some people.

Re:Miracles (Chips, how do they work?) (Score:5, Insightful)

by jhoegl ( 638955 )

From what I understand, the internal politics were basically around whoever commanded the largest team. I dont know that hiring people would have fixed it.

Intel diversified a lot, they have IT services, hosting services, GPU, CPU, motherboards, and chip manufacturing. Now they are building a new fab in Arizona, and used to be two other locations around the world.

Their failures compounded from lack of innovative CPU architecture generation, which is their core business, their handling of a key flaw in desktop CPUs, and relying too heavily on their server CPUs for their larger income. AMD trounced them in home CPU, and if they ever build more 3d cache systems, for servers, they will see another boon.

I believe they were also failing in IT/hosting services, which bled them even further.

So having "large groups" as a political landscape, failing in productivity across everything except GPU, which was starting up, and stupid decisions which lead to PR problems is just compounded problems that destroy a company in short order.

I think both CEOs are likely not going to bring Intel back. I think it will be divided up and sold, and I think we will lose out as consumers.

Core Competency: Lobbying, or engineering? (Score:5, Insightful)

by Tokolosh ( 1256448 )

Maybe if he had spent less time panhandling for taxpayer money for products for which the market was already willing to pay handsomely?

Maybe if he instead invested his time in engineering?

If your business model is predicated on government bail-outs, you don't have a business.

AI (Score:2, Funny)

by pele ( 151312 )

Will fix everything

"more semiconductors expertise on the board" (Score:5, Insightful)

by Lavandera ( 7308312 )

"more semiconductors expertise on the board"

This might be the explanation... MBAs running the company for years left it unable to do actual engineering... what a surprise...

Quality Work Can't Be Rushed (Score:5, Interesting)

by KalvinB ( 205500 )

It’s telling that Gelsinger described a culture where “not a single product was delivered on schedule” — and yet, that might be more of a symptom than the disease. In many industries, the obsession with arbitrary timelines and “on-schedule delivery” metrics becomes corrosive. When deadlines are treated as fixed points rather than guides, quality and innovation become secondary to appearances of progress.

Artificial timelines often create environments where teams are punished for realism and rewarded for overpromising. Engineering — whether of chips, cars, or code — demands time to iterate, test, and refine. When leadership values the schedule more than the product, people cut corners to meet goals that were never grounded in the reality of the work. Over time, that behavior institutionalizes mediocrity.

What Gelsinger called “decay” often begins when organizations forget that timelines are supposed to serve the work, not the other way around. Real engineering discipline means being honest about what’s possible — and having the courage to move a date if that’s what it takes to deliver something that lasts.

Re:Quality Work Can't Be Rushed (Score:4, Insightful)

by UnknowingFool ( 672806 )

While what you say is generally true about artificial deadlines, Intel’s problem is they were more than 5 years behind schedule. They were stuck on 14nm for years while TSMC and Samsung leaped ahead and are so far ahead that Intel was forced to contract TSMC to make some chips.

Re: (Score:2)

by KalvinB ( 205500 )

That's the business not investing in the people and the resources to move ahead. "Missing deadlines" also often stems from demands exceeding resources.

From the 1990's to the 2020's, Intel was more focused on profit and shareholders than investing in people and R&D.

Re:Engineers start up, MBAs and DEIs close down (Score:4, Insightful)

by ArchieBunker ( 132337 )

So you somehow found a way to blame DEI in an instance where it had zero mention? I guess DEI was the talking point on Fox News today.

Re: Engineers start up, MBAs and DEIs close down (Score:1)

by letnes ( 10152707 )

I was wondering how long it would take for someone to mention DEI. Didnâ(TM)t take long at all. We should just go back to the good old days when everyone knew their place.

Re: (Score:2)

by Junta ( 36770 )

Particularly striking as they started from a pretty solid premise, that mismanagement broadly is the cause. Especially citing Boeing, which was *well* documented that the changes can be traced back to acquiring McDonnel Douglas, which was ripe for the taking after being mismanaged into failure and Boeing having the genius idea that the best thing they can do with a leadership team that tanked their former company is to put them in charge of the still viable Boeing. People who wanted to scream DEI pointed t

Re: (Score:3)

by jacks smirking reven ( 909048 )

Also notice how DEI only applies to you know, the worker class. Meanwhile Intel has had 10 people in the CEO position over it's history: 8 white guys, 1 woman (who was Co-CEO for 1 year with another white guy) and currently an Asian man.

Meanwhile AMD has seen it's values rise with the Lisa Su at the helm and the OP would probably class her as a "DEI hire". The whole concept is nonsensical and thats because it's dishonest and just dog whistles.

"Please bring back the woke, my children are starving"

Re: (Score:2)

by swan5566 ( 1771176 )

"MBAs" had zero mention as well. DEI doesn't appear to be anywhere on Fox News today. What are you trying to day exactly?

Re: (Score:2)

by swan5566 ( 1771176 )

*say*

Process Paralysis (Score:2, Insightful)

by Anonymous Coward

Process Paralysis is what kills these large companies. Process Paralysis is something that is the result of MBAs who think that engineering can be reduced to a flowchart of steps to do - boxes to check.

So, engineering becomes a byzantine process where engineers spend 90% of their time complying with process requirements and only 10% of their time engineering, subject of course to the limitations and restrictions of "the process."

I worked at Honeywell Aerospace for a few years and the one thing that became v

Yep (Score:3, Insightful)

by gweihir ( 88907 )

Intel was never good at CPU engineering. The last 15 years or so they could only keep up by doing unsafe and insecure things and because of superior manufacturing. All these advantages are gone and they find themselves without critical capabilities. Comes from arrogance, too high profits and customer stupidity. For another case of this, look at Boeing that cannot design new airplanes anymore, just (badly) customize old designs.

Kicking Pat (Score:2)

by robi5 ( 1261542 )

Of course, Kicking Pat Gelsinger had nothing to do with either leaving Intel in a sorry state, or helping it recover, once he was back. And especially, he has nothing to do with the preparedness of the organization during the couple of years he was away, because the way top management works is that actions only ever have immediate impact, which of course no longer applied once he was back.

Sheesh.

I wouldn't really call it decay (Score:3)

by rsilvergun ( 571051 )

That implies rot from within but this was really just top down Intel firing anyone and everyone in order to make quarterly targets.

That was fine when AMD was struggling but AMD got their shit together in 2017. Intel kept firing people they actually need it all the way up to well, now.

The problem is that your engineers are rotting it's that you don't have them because you fired them. Worse it's not as if you got to assassinate them or anything so they went off and got jobs at your competitors.

This is why Nvidia has always been so strong they hire the hell out of engineers in order to keep them out of the hands of competitors. It's a bit problematic because it's why AMD and Intel have such a hard time competing in the GPU market space. They simply cannot afford to hire enough of the kind of engineers they need. Not with the budget the CEO gives them

We don't know how to Engineer (Score:2)

by bugs2squash ( 1132591 )

statements like this are sure to fill the remaining engineers with pride and make them want to stay

Re: (Score:2)

by Junta ( 36770 )

I wager engineers are willing to agree, as they see their work as solid but the business mismanaging things to make good engineering infeasible.

"We (the broader company) doesn't know how to engineer, but *I* still do" I could easily imagine being the takeaway. I think most of us can relate to being part of a broader mismanaged whole.

I'm sure AI will turn things around for them (Score:2)

by flibbidyfloo ( 451053 )

Maybe they can use AI to replace actual engineering talent. :P

According to Valve's annual hardware survey more than 42% of users are running AMD CPUs, which represents Intel's lowest market share among gamers since 2008.

Only part of the story... (Score:2)

by Junta ( 36770 )

I'd say the big thing is they took their core product as granted, and focused a great deal of their income on almost anything else, aiming/hoping for some horizontal growth instead of investing to preserve their processor market share. Intel is flush with cash and could either invest in CPUs, or, say, buy McAfee, a brand that had lost most of it's value a decade prior. Or maybe acquire some HPC products to try to build an in-house all-in-one HPC solution to compete with their partners, then decide that was

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