(Photo : Intel.com)
Intel Eyes Outsiders For CEO Role Post-Gelsinger

• Intel is searching for a new CEO following Pat Gelsinger's departure.
• Potential candidates include Lip-Bu Tan, a former Intel board member, and Matt Murphy, CEO of Marvell Technology.
• Intel's struggles include a significant revenue drop and its first predicted annual net loss since 1986.
• The CEO succession is a critical moment for Intel, with potential for fresh deal discussions and a significant company shake-up.

Intel, the American chipmaking behemoth, has initiated the process of identifying potential candidates for the role of Chief Executive Officer (CEO). This move follows the company's decision to oust Pat Gelsinger, a seasoned company veteran. Among the potential candidates is Lip-Bu Tan, a former board member of Intel and a respected figure in the semiconductor industry. Tan, who has been seen as a potential CEO for Intel for some time, was approached by the board recently to assess his interest in the role. The discussions are confidential, and the sources requested anonymity.

The board is primarily considering outsiders for the role and has also approached Matt Murphy, the CEO of Marvell Technology. The decision to replace Gelsinger, who took over Intel less than four years ago, was made after the board concluded that his expensive plan to revive Intel's fortunes was not progressing quickly enough. Gelsinger's tenure saw him inherit a company fraught with challenges, which he further compounded.

Intel's Struggles and Future Prospects

Despite setting high goals for manufacturing and AI capabilities among major clients, Intel lost or canceled contracts under Gelsinger's watch and failed to deliver the promised goods. Intel's revenue fell to $54 billion in 2023, a nearly one-third drop from the year Gelsinger took over. Analysts predict that Intel will lose $3.68 billion this year, marking its first annual net loss since 1986. The company's shares were down nearly 6% on Tuesday, more than 60% off from a peak hit in Gelsinger's first months as CEO.

The decline in Intel's share price has sparked interest from potential buyers, including Qualcomm. Murphy has been the CEO of Marvell since 2016, having previously worked at Maxim Integrated Products Inc for nearly 22 years. Tan, the former CEO of chip-software company Cadence Design, joined Intel's board two years ago as part of a plan to restore Intel's place as the leading global chipmaker.

CEO Succession and Potential Deals

However, Tan left in August after disagreements with Gelsinger on several aspects of Intel's turnaround plan, including the size of the company's workforce, its contract manufacturing strategy, and its work culture. The board has formed a search committee for Gelsinger's successor and is expected to make a final decision on his replacement in the coming months.

The search for Intel's next leader is one of the most closely watched CEO successions in corporate America and comes at a critical time for the struggling chipmaker, which is enduring one of the darkest periods in its five-decade history. The departure of Gelsinger also opens the door for fresh deal discussions. Qualcomm Inc. had previously expressed interest in a transaction, though nothing materialized. If the new CEO decides to go ahead with a more significant shake-up, Intel could revisit these deal ideas.