Intel CEO Pat Gelsinger retired and David Zinsner and Michelle Johnston Holthaus were named interim co-CEOs. Although demand for semiconductor chips has never been higher or more lucrative, Intel has struggled to match the success of its rivals.
Gelsinger, whose career spans more than 40 years, also left the company’s board of directors. He started at Intel in 1979 and was its first chief technology officer. He returned to Intel as CEO in 2021. Intel said Monday it will search for a new CEO.
Last week, it was revealed that the Biden administration plans to reduce some of Intel’s $8.5 billion in federal funding for computer chip plants across the country, according to three people familiar with the grant who spoke on condition of anonymity to discuss private conversations.
The reduction is largely a byproduct of the $3 billion Intel is also receiving to provide computer chips to the military. Joe Biden announced the deal to provide Intel with up to $8.5 billion in direct financing and $11 billion in loans in March.
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The changes in Intel’s funding are not related to the company’s financial history or its milestones, people familiar with the grant said. In August, the chipmaker announced it would cut 15% of its workforce (about 15,000 jobs) in a bid to pivot its business to compete with more successful rivals such as Nvidia and AMD. Unlike some of its rivals, Intel makes chips as well as designs them.
Zinsner is executive vice president and chief financial officer of Intel. Holthaus was appointed to the newly created position of CEO of Intel Products, which includes the client computing group, the data center and AI group, and the networking and edge group.
Frank Yeary, independent chairman of Intel’s board of directors, will become interim CEO.
“Pat spent his formative years at Intel and then returned at a critical time for the company in 2021,” Yeary said in a statement. “As a leader, Pat helped launch and revitalize process manufacturing by investing in next-generation semiconductor manufacturing, while working tirelessly to drive innovation across the company.”