Intel appoints Pat Gelsinger as new CEO - Industry - News

Andrew Cummings
January 13, 2021

FILE - In this October 1, 2019, file photo the symbol for Intel appears on a screen at the Nasdaq MarketSite, in NY.

Intel sent shockwaves through the IT world Wednesday as it announced that VMware's CEO, Pat Gelsinger, will be replacing Bob Swan next month as Intel's new CEO.

Swan was made permanent chief in early 2019 after an extensive search failed to yield an external candidate.

Sources familiar with the matter told Reuters that Gelsinger had turned down the top Intel job before, and it was not immediately clear what had changed his mind.

Intel, long the world leader in chip-making technology, has lost its manufacturing edge in recent years and is now debating whether to outsource some of it flagship central processor unit chips, or CPUs, slated for release in 2023.

In December, a major hedge fund with a one-billion-dollar stake in Intel, Third Point, issued a letter to urge Intel to take "immediate action" and shake up its business model to combat the mounting threats to the company. "Intel has been stuck at its 14-nanometer node since 2013, while TSMC and Samsung both transitioned to 5-nanometer this year and are developing more advanced process geometries", wrote Daniel Loeb, chief executive at Third Point. Apple also ditched Intel's silicon in new MacBooks in favor of its own ARM-based chips.

CEO of VMWare, Pat Gelsinger, is expected to take over the position. He spent most of that time with Intel Corp., where he began his career and was its first chief technology officer.

Swan, a former chief financial officer at Intel, assumed interim leadership in 2018 after CEO Brian Krzanich resigned after the company learned of what it called a past, consensual relationship with an employee.

Other reports by iNewsToday