As Intel welcomes a new CEO, a look at where the company stands
Semiconductor Giant Intel rented semiconductor veteran Lip-bu Tan in Toh the new CEO. This news arrives three months after Pat Gelsinger retired and resigned from the company’s board, with Intel CFO David Zinner and executive vice-president of customer relationships Michelle Johnston Holthaus who stepped into co-COOs.
Brown, The most recently the CEO was from Cadans Design Systems, is a member of Intel – and to join the board – in an interesting time in the history of Silicon Valley Company. Intel has seen a good part of UPS and Downs in recent years – to say the least.
When Gelsinger took over in February 2021, Intel was already struggling and he fell far behind his colleagues in the semiconductor race. At the time, the company was probably still missing the smartphone revolution in addition to missteps when it came to chip manufacturing.
It was also an interesting time for the semiconductor industry in general. The sector had seen a lot of recent consolidation at the end of 2020, including AMD who acquires Xilink for $ 35 billion and analogue Koopmaxim for $ 21 billion, among others.
So what was Gelsinger’s most recent term of office at Intel? Let’s look.
Gelsinger immediately went to work when he started. He announced a modernization plan for the company, called IDMOr integrated device production. The first part of the goal was an investment of $ 20 billion to build two new chip production facilities in Arizona, with plans to stimulate chip production in the US and then.
In 2022, the company announced the second part of this IDM plan, which included a three-part approach to chip production: Intel’s FABs, worldwide manufacturers of third parties and building the company’s watering service services. As part of this plan, the company announced that the Tower Semiconductor would acquire $ 5.4 billion to help build Intel’s Custom Foundry Services.
However, that deal fell after it confronted with regulatory obstacles. It was canceled in the summer of 2023. At the time, WAN reported that the merger that was canceled would have a serious impact on the company’s modernization plans. In September 2024 Intel took steps to switch his Chip Foundry Division, Intel Foundry, to an independent subsidiary.
The time prior to Gelsinger’s retirement was especially tumultuous for Intel. The company’s share price fell around 50% from the beginning of 2024 to Gelsinger’s departure in December. Intel announced plans to dismiss 15% of his workforce, around 15,000 people, in August after a gloomy results of the second quarter. At that time, Gelsinger said that the company had trouble taking advantage of the AI tree in the same way as its rivals, and that despite lagging behind, Intel had an overgrown workforce.
In the time since Gelsinger’s departure, the company has again delayed the opening of its chip factory in Ohio and decided not to market Falcon Shores AI chips.
But if Brown Takes the lead, things may start to go in the right direction. Intel concluded a deal with the US Department of Trade to receive a subsidy of $ 7,865 billion for domestic semiconductor production through the US Chips and Science Act; Intel has already received $ 2.2 billion of that subsidy money, according to the profit call of the fourth quarter. The company was also able to win when it comes to the popularity of his ARC B580 -graphic map, which was sold out Positive Early Reviews.
