Intel Starts Search for New CEO Following Pat Gelsinger’s Departure

Intel INTC, the iconic American chipmaker, is reportedly on the lookout for its next chief executive officer following the recent ousting of long-term company veteran Pat Gelsinger. Sources familiar with the matter indicate that the company’s board has started discussions with several external candidates, including former board member Lip-Bu Tan and Marvell Technology MRVL CEO Matt Murphy, to potentially fill this pivotal role.

CEO Transition After Gelsinger’s Exit

Pat Gelsinger, who had been at the helm of Intel for less than four years, stepped down from his position Monday, under the pressing directive from the board who expressed concerns that his ambitious plan to revitalize the company’s fortunes was progressing too slowly. The decision was a culmination of ongoing deliberations within the board on the future leadership of the tech giant.

The board has since formed a search committee dedicated to identifying Gelsinger’s successor, although the process is still in its early stages. Consequently, no official candidate has been named; however, discussions with both Lip-Bu Tan and Matt Murphy have taken place to assess their interest in the role.

Profiles of the Potential Candidates

Lip-Bu Tan

Tan, a respected figure in the semiconductor industry, has long been considered a frontrunner for the CEO position at Intel. Prior to his departure, he was involved with the company’s board and had his responsibilities expanded in October 2023 to include oversight of manufacturing operations. However, Tan’s relationship with Gelsinger soured due to differing perspectives on the company’s turnaround strategy, particularly concerning workforce size and contract manufacturing tactics.

Matt Murphy

Murphy has served as CEO of Marvell since 2016 and previously held a lengthy career at Maxim Integrated Products Inc. During a recent quarterly earnings call, Murphy emphasized that he is “100% focused on Marvell,” indicating a commitment to his current role even amid Intel’s search for a new CEO. Despite being on Intel’s radar, his current priorities suggest that he may not be actively pursuing a transition to Intel.

Implications of CEO Change for Intel

The timing of this leadership transition could not be more critical for Intel, which is currently navigating one of the most challenging periods in its five-decade history. Under Gelsinger’s leadership, the company’s revenues plummeted to $54 billion in 2023—a significant decline from the revenues seen during his initial months as CEO, representing nearly a one-third decrease. This sharp revenue drop has led analysts to project a staggering $3.68 billion loss for the year, marking Intel’s first annual net loss since 1986.

Moreover, in the wake of Gelsinger’s exit, Intel’s shares have taken a substantial hit, dropping nearly 6% recently and plummeting over 60% from their peak during Gelsinger’s early tenure. This decline has notably attracted the attention of potential suitors, such as Qualcomm, as the search for a new leader gets underway.

Conclusion

As Intel embarks on this critical search for its next leader, the stakes have never been higher. The new CEO will need to address not only the immediate challenges facing the company but also strategically position Intel to reclaim its status as a leading player in the semiconductor industry. With discussions reportedly ongoing, all eyes will remain on Intel—a company that has been a cornerstone of technological innovation for decades—as it seeks to navigate this transitional phase and emerge stronger.

For ongoing coverage about Intel’s leadership search and the semiconductor industry, stay tuned as further updates emerge.