16 hours Ago
Intel is actively exploring external candidates to replace ousted CEO Pat Gelsinger , with the chipmaker's board engaging executive search firm Spencer Stuart to identify potential successors, multiple sources reported. The 56-year old American chipmaker will be breaking from its traditional internal promotion strategy, with sources indicating the company is seriously considering outside talent to lead the struggling semiconductor giant. Two prominent candidates have emerged from reports.
Matt Murphy, CEO of Marvell Technology, and Lip-Bu Tan, a former Intel board member, are reportedly at the top of the shortlist. Murphy leads Marvell, semiconductor company that has seen significant growth, with its stock up 59% this year, while Tan brings extensive board experience from technology firms including SoftBank Group and Hewlett Packard Enterprise. 2024 has been a hard year for Intel, which has seen its stock price drop nearly 50% this year amid significant market challenges.
The company has struggled with billions in losses, extensive layoffs, and missed targets, including falling short of projected sales for its AI chip line, Gaudi. Intel doesn't usually hire leaders from outside the company. But this time, the company's leadership pool has shrunk, and the problems are so complicated that they might need someone new with a different way of thinking to turn things around.
Gelsinger, who had initially been brought in to revitalize the company but was ‘forced’ to retire only 3-year later, will receive approximately $10 million in severance. Interim leadership has been established with David Zinsner, Intel's CFO, and Michelle Johnston Holthaus serving as co-CEOs. The board is conducting a comprehensive search that extends well beyond internal candidates.
The new CEO will face the critical task of restoring Intel's competitive position in the semiconductor industry, addressing manufacturing challenges, and developing strategies to compete with rivals like Nvidia and AMD..
