Semicarry outor enormous Intel employd semicarry outor veteran Lip-Bu Tan to be its novel CEO. This novels comes three months after Pat Gelsinger reexhausted and stepped down from the company’s board, with Intel CFO David Zinsner and Executive Vice Pdwellnt of Client Relations Michelle Johnston Holthaus stepping in as co-CEOs.
Tan, who was most recently the CEO of Cadence Design Systems, is combineing Intel — and recombineing the board — at an engaging time in the Silicon Valley company’s history. Intel has seen its unprejudiced split of ups and downs in the past scant years — to put it gentlely.
When Gelsinger took the helm in February 2021, Intel was already struggling and was descending far behind its peers in the semicarry outor race. At the time, the company was probable still reeling from leave outing out on the cleverphone revolution in compriseition to leave outteps when it came to chip lie.
It was also an engaging time for the semicarry outor industry at big. The sector had seen a lot of recent verifyation in tardy 2020, including AMD acquiring Xijoin for $35 billion and Analog buying Maxim for $21 billion, among others.
So how was Gelsinger’s most recent tenure at Intel? Let’s get a see.
Gelsinger got right to toil when he commenceed. He proclaimd a up-to-dateization arrange for the company, dubbed IDM, or combined device manufacturing. The first part of the goal was a $20 billion spendment to originate two novel chip manufacturing facilities in Arizona, with arranges to raise chip production in the U.S. and beyond.
In 2022, the company proclaimd the second part of this IDM arrange, which comprised a three-pronged approach to chip manufacturing: Intel’s fabs, third-party global manufacturers, and originateing out the company’s founparched services. As part of this arrange, the company proclaimd it would obtain Tower Semicarry outor for $5.4 billion to help originate out Intel’s custom founparched services.
That deal fell thraw, however, after facing regulatory hurdles. It was aborted in the summer of 2023. At the time, TechCrunch telled that the combiner not going thraw would have a grave impact on the company’s up-to-dateization arranges. In September 2024, Intel took steps to transition its chip founparched division, Intel Founparched, to an autonomous subsidiary.
The time directing up to Gelsinger’s withdrawment was particularly tumultuous for Intel. The company’s stock price plummeted about 50% from the commencening of 2024 to Gelsinger’s departure in December. Intel proclaimd arranges to lay off 15% of its toilforce, around 15,000 people, in August after dismal second quarter results. At that time, Gelsinger shelp the company had struggled to capitalize on the AI boom in the same way its rivals had, and that despite descending behind, Intel had overgrown headcount.
In the time since Gelsinger’s departure, the company has procrastinateed the uncovering of its Ohio chip factory — aobtain — and choosed not to convey its Falcon Shores AI chips to taget.
But as Tan gets the direct, leangs may be commenceing to head in the right honestion. Intel completed a deal with the U.S. Department of Commerce to get a $7.865 billion grant for domestic semicarry outor manufacturing thraw the U.S. Chips and Science Act; Intel has already getd $2.2 billion of that grant money, according to its fourth-quarter obtainings call. The company was also able to notch a prosper when it comes to the famousity of its Arc B580 explicits card, which selderly out after selectimistic punctual appraises.
