Last year, Intel‘s board abruptly ended Pat Gelsinger‘s turnaround attempt, cutting short what he believed would be a five-year transformation of the semiconductor giant. “I wasn’t done with the five-plus years when the board made a directional change,” Gelsinger told reporters, revealing his frustration with a tenure that saw the company’s market position dramatically erode.
Gelsinger had pitched a five-plus year plan to turnaround Intel when he joined the chipmaker. However, just three years into his tenure, Gelsinger was given an ultimatum by the board after it lost the confidence, either to announce his retirement or face removal. Gelsinger ultimately chose retirement, bringing his tumultuous tenure, marked by what some analysts called significant strategic missteps, to an end with a bittersweet acknowledgement that the company had been “his life for the bulk of his working career.”
What went wrong at Pat Gelsinger’s Intel
Under his leadership, Intel’s revenue plummeted to $54 billion in 2023, nearly one-third below 2021 levels. The company reported its first annual net loss since 1986, with its stock crashing 66% from its peak during Gelsinger’s early months as CEO.
Failures plagued Gelsinger’s strategy. He missed crucial opportunities in the artificial intelligence market, allowing competitors like Nvidia to dominate. A diplomatic blunder with TSMC, where he questioned Taiwan’s stability, cost Intel a valuable manufacturing partnership. The company’s ambitious 18A chip manufacturing process encountered significant obstacles, with early tests revealing poor chip quality and potential customers like Apple and Qualcomm declining to use the technology.
Intel finds its new CEO, and he wants to do things differently than Gelsinger
Enter Lip-Bu Tan, Intel’s new CEO, who brings a markedly different approach. Where the general consensus is that Gelsinger struggled with bloated management and slow decision-making, Tan is planning aggressive restructuring. He aims to streamline the company’s workforce, particularly targeting what he sees as an inefficient middle management layer.
Tan’s initial strategy focuses on revitalizing Intel Foundry and pursuing more aggressive AI chip production. He plans to improve manufacturing efficiency and actively court new customers like Microsoft and Amazon. Unlike Gelsinger’s broad, sometimes unfocused approach, Tan intends to make “tough decisions” to position Intel competitively in the rapidly evolving semiconductor landscape.
Meanwhile, Gelsinger has found a new home in venture capital, joining Playground Global as a general partner. He’s already exploring deep-tech investments and serving as executive chair of portfolio company xLight,