Intel CEO Gelsinger Exits as Chip Pioneer's Turnaround Falters
- Reference: 0175579289
- News link: https://tech.slashdot.org/story/24/12/02/1427231/intel-ceo-gelsinger-exits-as-chip-pioneers-turnaround-falters
- Source link:
Gelsinger, 63, [2]was hired in 2021 to lead an ambitious turnaround aimed at reclaiming Intel's technological edge from competitors like Taiwan Semiconductor Manufacturing Co. His strategy included expanding Intel's factory network with new facilities in Ohio and transforming the company into a contract manufacturer for other firms. The plan faced significant headwinds as Nvidia dominated the AI chip market, with cloud computing companies increasingly favoring Nvidia's processors for AI development over Intel's Gaudi line.
Intel's challenges culminated in an August earnings report showing a surprise loss, leading to dividend suspension and plans to cut over 15% of its 110,000-person workforce. Board Chairman Frank Yeary, now serving as interim executive chair, emphasized the need to prioritize Intel's product group to meet customer demands. The leadership change also impacts the Biden administration's semiconductor industry initiatives, as Intel was set to receive the largest grant under the $39 billion Chips Act program.
[1] https://www.intc.com/news-events/press-releases/detail/1719/intel-announces-retirement-of-ceo-pat-gelsinger
[2] https://hardware.slashdot.org/story/21/01/13/1427248/intel-ceo-bob-swan-to-step-down-in-february-vmware-ceo-pat-gelsinger-to-replace-him
Cue AOL shutdown sound: "Goodbye!" (Score:2)
> The chipmaker announced Monday that Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus will serve as interim co-CEOs,
Bad: co-CEOs.
Worse: One of them is the CFO
You make the CFO the CEO when you are liquidating. Otherwise they always want austerity and that ruins the company. You have to spend money to make money.
Re: (Score:2)
Gelsinger clearly wasn't having success quickly enough. There's not a lot of evidence that the turnaround will be successful after ~4 years at the helm. I'm not surprised that he was ousted.
Still, it's a bit sad to see the technical guy get ousted, since we can all agree that Intel's problems were created by having business guy/CFO types and that's probably who will end up replacing him.
From Techspot (Score:3)
His compensation increased 45% to $16.86 million in 2023...a 45% increase on his 2022 compensation of $11.61 million, writes MarketWatch...The majority of CEOs' compensation tends to come from stock awards. Intel's share price was up over 90% in 2023 after falling almost 50% the year before, meaning that although Gelsinger's $1.07 million base salary in 2023 was down 18% compared to the previous year's $1.3 million, the value of the stock awards he received increased from $8.87 million to $12.43 million. His non-equity incentive plan compensation, which includes cash performance bonuses, increased from $945,900 to $2.89 million. He also received $112,000 in deferred compensation, while the 'all other compensation' category was down from $497,100 to $362,900. In total, Gelsinger's compensation reached $16.86 million in 2023....When appointed Intel boss in 2021, he received total compensation of $178.59 million, which included $140.43 million in new-hire equity awards. Intel's stock is down 28.5% since then...
He'll be fine. he can hire professional mourners.
[1]article [techspot.com]
[1] https://www.techspot.com/news/102461-despite-45-increase-1686-million-intel-ceo-pat.html
What "turnaround"? (Score:2)
Intel got big because of a historical accident, lies and a superior manufacturing process. They never were a good CPU designer. Now that the manufacturing advantage is gone, they die. As it should be.
Re: (Score:2)
I'll agree with ccident/luck and lies but I don't think their manufacturing has been considered superior since the early 80s and they weren't that big back then. The CPU design isn't good but they have done remarkably well at extending the x86 CISC ISA beyond what anybody thought was possible.
Re: (Score:2)
I know this is a while ago, but the Core 2 Duos were pretty amazing at the time. I don't think it was just the process advantage that led to such an enormous leap in performance compared to AMD at the time.
Too soon. (Score:5, Informative)
I understand that shares losing value is the driving factor here but it's too soon. Gelsinger was given a company that had gone off a cliff in search of profits and was actually turning it around. The problem is that it takes multiple years to get major microarchitecture changes to market which means that it is the past failures that are dragging him down. I wouldn't be surprised if the results of Gelsinger's efforts finally emerge under the next CEO.
I have an idea (Score:1)
Take whoever names the chips with you on your way out.
But seriously, Gelsinger has managed to knowingly release defective crap. Make chips hotter and call it progress. And mostly importantly, nothing.
Just in time (Score:5, Insightful)
Gelsinger has spent the last three years rebuilding Intel's foundry business and now that the work is mostly complete and [1]a few quarters from paying off [nasdaq.com] somebody else will be brought in to take the credit.
[1] https://www.nasdaq.com/articles/surprising-number-inside-intels-balance-sheet-suggests-something-big-coming-its-war-tsmc
Intel just died (Score:2)
I think Pat was their last hope, he tried to save them, but the do nothing crowd before and after him will make no waves until they slowly decline to nothing
Another one bites the dust (Score:2)
The news just reported that the CEO of Stellantis also resigned due to large operating losses. Different industries, same problem.
I wonder who else is going to throw in the towel.
Re: (Score:2)
Don't fret about these CEOs. They'll do just fine
Re: (Score:3)
> Don't fret about these CEOs. They'll do just fine
The concern isn't for CEOs - it's for the rest of us. These developments are warning signs that those of us without huge nest-eggs and golden parachutes are in for a very rough ride when the economy tanks.
Re: (Score:2)
For the very wealthy, yes.
Life was better w/ competition + national security (Score:5, Insightful)
>> Don't fret about these CEOs. They'll do just fine
> The concern isn't for CEOs - it's for the rest of us. These developments are warning signs that those of us without huge nest-eggs and golden parachutes are in for a very rough ride when the economy tanks.
The economy is showing a lot of concerning signs, but not in this case. Intel is not struggling due to the economy, but due to losing Apple and competing poorly against AMD...they're just not very competitive right now and that's a very bad thing. I've always actively disliked Intel...even when I bought one of their CPUs, by choice, 15 years ago when AMD was sucking. However, chip manufacturers don't innovate without competition.
Throughout most of its history Intel has been top dog and when they're not competing against a strong AMD, they don't put much work into their CPUs...same clockspeed, smaller transistors, typically. Once Cyrix and later on AMD came out with credible threats that were popular with enthusiasts, Intel stepped up their game.
Today, we have ARM and AMD competing, but ARM is very much siloed. They're not a threat in the gaming space and they're still too adventurous for most in the enterprise space. So really, without Intel, AMD just will become Intel...lazily releasing mediocre chips and sandbagging innovation because there's no sense in releasing their latest developments if they're securely making good profits off old tech.
The other concern is Intel has fabs. If China invades Taiwan, good luck getting any Apple or AMD chips. I know Samsung has fabs, but they're no substitute for the chips TSMC makes. Sure, prices will skyrocket, but at least we'll have Intel chips until TSMC can ramp up production elsewhere. TSMC is setting up fabs off Taiwan...but the transition will be far from painless. Also, CPUs are necessary for the global economy. How badly do you want EVERYONE's CPUs dependent on a single small island? So as much as Intel grosses me out for their long history of abuse, I am rooting for them to succeed so we can have competition and not see the CPU development landscape stagnate for a decade. Having server and good device chips made outside of Taiwan is a matter of national security and our economic livelihoods. Even if Intel isn't the best, it's important to ensure they succeed.