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semiconductor machine heavyweight Intel hiredsemiconductor ex-serviceman Lip - Bu Tanto be its fresh CEO . This news come three month afterPat Gelsinger retiredand maltreat down from the company ’s circuit board , with Intel CFO David Zinsner and executive frailty United States President of client relations Michelle Johnston Holthaus step in as carbon monoxide - chief operating officer .
Tan , who was most recently the CEO of Cadence Design Systems , is bring together Intel — and rejoining the display board — at an interesting time in the Silicon Valley company ’s history . Intel has go steady its just share of ups and downs in the retiring few years — to put it mildly .
When Gelsinger took the helm in February 2021 , Intel was already struggling and was falling far behind its equal in the semiconductor unit race . At the clock time , the party was likely still reeling frommissing out on the smartphone revolutionin increase to missteps when it came to chip shot fabrication .
It was also an interesting time for the semiconductor machine industriousness at large . The sphere had seen a lot of recent consolidation in late 2020 , includingAMD get Xilinkfor $ 35 billion andAnalog bribe Maximfor $ 21 billion , among others .
So how was Gelsinger ’s most late tenure at Intel ? permit ’s take a looking .
Gelsinger start ripe to lick when he started . He announced a modernization plan for the caller , dub IDM , or integrated machine manufacture . The first part of the destination was a $ 20 billion investing to build two new chip manufacturing facilities in Arizona , with plan to boost chip output in the U.S. and beyond .
In 2022 , the fellowship announce the second part of this IDM plan , which involved a three - pronged approach to flake manufacturing : Intel ’s fabs , third - political party world-wide producer , and building out the company ’s foundry services . As part of this plan , the troupe announced it wouldacquire Tower Semiconductorfor $ 5.4 billion to help build out Intel ’s custom metalworks serving .
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That quite a little fell through , however , after facing regulative hurdle . It was canceled in the summer of 2023 . At the time , TechCrunchreportedthat the merger not belong through would have a serious impact on the company ’s modernisation plans . In September 2024,Intel took steps to transition its chip foundry division , Intel Foundry , to an self-governing foot soldier .
The meter lead up to Gelsinger ’s retirement was especially tumultuous for Intel . The ship’s company ’s stock price plump about 50 % from the beginning of 2024 to Gelsinger ’s departure in December . Intel announce plans tolay off 15 % of its hands , around 15,000 citizenry , in August after dismal second - quarter results . At that time , Gelsinger said the company had sputter to take advantage on the AI windfall in the same way its competitor had , and that despite falling behind , Intel had overgrown headcount .
In the time since Gelsinger ’s leaving , the company hasdelayed the opening of its Ohio chip factory — again — and decided not to bring itsFalcon Shores AI chipsto grocery store .
But asTantakes the trail , thing may be starting to guide in the right counseling . Intel finalized a mint with the U.S. Department of Commerce to meet a$7.865 billion grantfor domestic semiconductor unit manufacturing through the U.S. Chips and Science Act ; Intel has already received$2.2 billion of that grant money , concord to its fourth - quarter earnings call . The companionship was also able to notch a winnings when it comes to the popularity of its Arc B580 artwork scorecard , which sell out afterpositive early review .
