Intel Drops a Bombshell Announcing CEO Pat Gelsinger's Retirement
Intel Corporation announced on December 2 that CEO Pat Gelsinger has retired after a distinguished 40-plus-year career and has stepped down from the board of directors, effective December 1, 2024.
According to Intel’s press release, David Zinsner and Michelle (MJ) Johnston Holthaus have been appointed interim co-chief executive officers while the board of directors searches for a new CEO.
Although Gelsinger’s return to Intel brought a grand vision for IDM 2.0—aiming to accelerate technology advancement by achieving five nodes in four years—the yields were reportedly not commercially satisfactory. As a result, Intel outsourced 3nm and its most advanced AI chips to TSMC to shorten the go-to-market time for its products.
Despite securing $7.86 billion in direct funding through the U.S. CHIPS and Science Act, the amount was lower than the $8.5 billion previously announced. Additionally, Reuters reported that Intel cannot sell its Intel Foundry Services (IFS) unit and must maintain a controlling stake even if it spins off the unit as a public company. The contract also restricts any third party from acquiring a substantial stake in Intel.
However, with IFS reporting heavy losses quarter after quarter, these restrictions make it difficult for Intel to resolve its challenges. Gelsinger may have been frustrated by the situation.
Intel’s cost-cutting plan to save $10 billion and lay off 15% of the workforce has affected morale, disappointing many senior engineers who opted to take voluntary early retirement or separation.
Intel’s Leadership Transition and Legacy
Frank Yeary, interim executive chair, praised outgoing CEO Pat Gelsinger for his decades-long contribution to Intel, highlighting his role in revitalizing semiconductor manufacturing and driving innovation since returning in 2021. Yeary emphasized the board’s commitment to advancing product and process leadership, restoring investor confidence, and streamlining operations under interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus.
Gelsinger reflected on his tenure with pride, calling his leadership role at Intel “the honor of a lifetime” and acknowledging the company’s collective achievements during challenging times.
Zinsner, with over 25 years of semiconductor and technology leadership experience, and Holthaus, a 30-year Intel veteran with extensive management expertise, reiterated their focus on delivering customer-driven product and process innovation while maximizing returns on foundry investments.
Intel’s Transition Plan
Zinsner currently serves as executive vice president and chief financial officer, while Holthaus has been appointed to the newly created position of CEO of Intel Products. This group encompasses the company’s Client Computing Group (CCG), Data Center and AI Group (DCAI), and Network and Edge Group (NEX).
Frank Yeary, independent chair of Intel’s board, will act as interim executive chair during the transition. The Intel Foundry leadership structure remains unchanged. The board has formed a search committee and pledged to work diligently to find Gelsinger's successor.
Statements from Intel Leadership
Yeary stated, “On behalf of the board, I want to thank Pat for his many years of service and dedication to Intel across a long career in technology leadership. Pat spent his formative years at Intel, then returned at a critical time for the company in 2021. As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing while working tirelessly to drive innovation throughout the company.”
He continued, “While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know we have much more work to do at the company and are committed to restoring investor confidence. As a board, we know first and foremost that we must put our product group at the center of all we do. Our customers demand this from us, and we will deliver for them. With MJ’s permanent elevation to CEO of Intel Products, along with her interim co-CEO role at Intel, we are ensuring the product group will have the resources needed to deliver for our customers. Ultimately, returning to process leadership is central to product leadership, and we will remain focused on that mission while driving greater efficiency and improved profitability.”
Yeary concluded, “With Dave and MJ’s leadership, we will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio, advancing our manufacturing and foundry capabilities, and optimizing our operating expenses and capital. We are working to create a leaner, simpler, more agile Intel.”