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Change of CEO at Intel announced

Arthur Hanson

Well-known member
Bob Swan is out and Pat Geslinger is in at Intel as of 2/15. They talked about how TSM has crushed Intel on CNBC now. Dan Loeb is considered key in this change as he represents Wall Street and the money. They said Intel may go fab light and TSM will do their production. TSM is now rated the most important company in the world.

How long will it take to Pat Geslinger to turn Intel around and how? Can Intel catch up to TSM? How much money does Intel need to catch up and how much talent will Intel have to recruit? Does the supply line have the resources to retool Intel and how long for delivery? I can think of no better forum in which to ask these critical questions. I feel TSM has a large lead with a large moat that will be very difficult to challenge for a number of years. As an outsider, how long will it take Pat Geslinger to get up to speed? Any thoughts or comments in this area would be appreciated. Is Pat Geslinger experience at VMware going to come into play and how? TSM is down about three percent now and Intel up 9%.
 

Daniel Nenni

Admin
Staff member


Gelsinger earned a master's degree from Stanford University in 1985, his bachelor's degree from Santa Clara University in 1983 (magna cum laude), and an associate degree from Lincoln Technical Institute in 1979, all in electrical engineering. In 2008, he was named a Fellow of the IEEE and that same year awarded an Honorary Doctorate of Letters from William Jessup University. He holds eight patents in the areas of VLSI design, computer architecture and communications, and currently serves as a member on the National Security Telecommunications Advisory Committee (NSTAC).
 

count

Active member
I think it's notable that Bob Swan got $12 million in severance when he left Ebay and will probably get an even bigger number from Intel.
 

Daniel Nenni

Admin
Staff member
Do not underestimate the power of an angry hedge fund activist? Do not underestimate the power of Intel Manufacturing inside of Intel?
 

alphaguy

New member
An opportunity for Intel to get back to it's technocrat roots like under Andy Grove. Better than an empty suit.
 

lilo777

Member
Do not underestimate the power of an angry hedge fund activist?
I saw reports about Intel looking for new CEO before the hedge fund story broke up. Besides, for the companies of Intel caliber CEO searches take way longer than the age of the hedge fund news.
 

count

Active member
I saw reports about Intel looking for new CEO before the hedge fund story broke up. Besides, for the companies of Intel caliber CEO searches take way longer than the age of the hedge fund news.
I agree with this, Third Point likely accelerated a process that was already in motion.
 

Robert Maire

Moderator
Bob Swan leaves Intel- Pat Gelsinger, ex CTO, Intel lifer returns
A change for the better as someone who knows technology
Maybe the board at Intel read our last note

Our recent note on Intel and its historical issues and decisions being faced was obviously well timed. We view the news of Bob Swans departure as a significant positive for Intel and likely pushes the outsource decision both out a bit and likely more inclined to remaining a manufacturer.

Bob Swan, as the former CFO was at best an interim CEO which should have been a lot less than the 2 years it turned out to be.
Running a technology based company such as Intel does very much require a technical background to fully understand and make competent decisions about complex technical issues that get more complex every year.

Pat Gelsinger

You can't get a more hard core Intel "Insider". Pat spent 30 years at Intel and was the first CTO. He was the "architect" of the 80486 and holds 8 patents including VLSI design. Pat Gelsinger Bio, at the very least he knows both Intel and the technology as good as anyone.

Likely delays Outsource decision

While there was an expectation , including from us, that Intel would have to fish or cut bait with a decision on wether or not to outsource manufacturing or not. We think that this decision is likely delayed as it is certainly a monumental decision not to be taken lightly nor made by an ex bean counter (no disrespect to all the CFOs reading this).

He also wouldn't take the reins just to ride Intel into the sunset of manufacturing. Our best guess is that a full decision is likely at least 6 months off. We may see an interim decision more quickly as a band aid or place keeper.


Decision now leaning more to insourcing

As the ex CTO and almost lifelong Intel employee with a strong technology background there is likely a strong bias to engineer and fight his way out of Intel's current manufacturing issues. He will also not likely be able to be "snowed" by excuses and other personality issues inside Intel.

A change in normal corporate maturity

We would suggest that many, if not most silicon valley technology companies see their founders leave as the company "matures" and are replaced by more "operational" or "financial" types over time.

The skill set of an inventor/entrepreneur is much different than operating an ongoing public company.
In the case of Intel, as we recently pointed out, the problem was technical not financial and perhaps more managerial lack of focus.
This "back to basics" type of move by the board seems to indicate a return to core values and philosophy.
This is not a turn around expert or "chainsaw Al" or undertaker but a "true believer".

The Stock...

Is obviously seeing a strong positive reaction as the board has heard investors and activists alike.
Not only is it positive for Intel but we think its a positive sign for the industry as well that we will likely get a better, more informed decision and outcome to what is wrong with Intel. We would suggest that it may take a while, likely a couple of quarters but investors should be patient that things will get better
 

Daniel Payne

Moderator
Back in the 1980s I was at Intel designing a GPU called the 82786 in Santa Cruz, while Pat Gelsinger was working on the 80386 in Santa Clara, so it's nice to have a technologist in Intel at the helm again.
 

Arthur Hanson

Well-known member
Bob Swan leaves Intel- Pat Gelsinger, ex CTO, Intel lifer returns
A change for the better as someone who knows technology
Maybe the board at Intel read our last note

Our recent note on Intel and its historical issues and decisions being faced was obviously well timed. We view the news of Bob Swans departure as a significant positive for Intel and likely pushes the outsource decision both out a bit and likely more inclined to remaining a manufacturer.

Bob Swan, as the former CFO was at best an interim CEO which should have been a lot less than the 2 years it turned out to be.
Running a technology based company such as Intel does very much require a technical background to fully understand and make competent decisions about complex technical issues that get more complex every year.

Pat Gelsinger

You can't get a more hard core Intel "Insider". Pat spent 30 years at Intel and was the first CTO. He was the "architect" of the 80486 and holds 8 patents including VLSI design. Pat Gelsinger Bio, at the very least he knows both Intel and the technology as good as anyone.

Likely delays Outsource decision

While there was an expectation , including from us, that Intel would have to fish or cut bait with a decision on wether or not to outsource manufacturing or not. We think that this decision is likely delayed as it is certainly a monumental decision not to be taken lightly nor made by an ex bean counter (no disrespect to all the CFOs reading this).

He also wouldn't take the reins just to ride Intel into the sunset of manufacturing. Our best guess is that a full decision is likely at least 6 months off. We may see an interim decision more quickly as a band aid or place keeper.


Decision now leaning more to insourcing

As the ex CTO and almost lifelong Intel employee with a strong technology background there is likely a strong bias to engineer and fight his way out of Intel's current manufacturing issues. He will also not likely be able to be "snowed" by excuses and other personality issues inside Intel.

A change in normal corporate maturity

We would suggest that many, if not most silicon valley technology companies see their founders leave as the company "matures" and are replaced by more "operational" or "financial" types over time.

The skill set of an inventor/entrepreneur is much different than operating an ongoing public company.
In the case of Intel, as we recently pointed out, the problem was technical not financial and perhaps more managerial lack of focus.
This "back to basics" type of move by the board seems to indicate a return to core values and philosophy.
This is not a turn around expert or "chainsaw Al" or undertaker but a "true believer".

The Stock...

Is obviously seeing a strong positive reaction as the board has heard investors and activists alike.
Not only is it positive for Intel but we think its a positive sign for the industry as well that we will likely get a better, more informed decision and outcome to what is wrong with Intel. We would suggest that it may take a while, likely a couple of quarters but investors should be patient that things will get better
The problem Intel faces is the "Great Acceleration" that I have been writing about for years. With every passing year technology and everything else is changing and advancing at an ever accelerating rate. Once you loose the lead, it is harder than ever to catch up. You can bet Samsung, TSMC, Nvidia, AMD and others are moving at full speed and accelerating with this ethos fully engrained in their culture. Just by the time Intel shifts its culture back to its roots, the competition will be that much farther ahead and progressing ever faster. Intel will literally have to pull a rabbit out of its hat and hope the competition makes more than a few mistakes. Their is no mercy in this age of "The Great Acceleration".
 

hist78

Active member
Bob Swan leaves Intel- Pat Gelsinger, ex CTO, Intel lifer returns
A change for the better as someone who knows technology
Maybe the board at Intel read our last note

Our recent note on Intel and its historical issues and decisions being faced was obviously well timed. We view the news of Bob Swans departure as a significant positive for Intel and likely pushes the outsource decision both out a bit and likely more inclined to remaining a manufacturer.

Bob Swan, as the former CFO was at best an interim CEO which should have been a lot less than the 2 years it turned out to be.
Running a technology based company such as Intel does very much require a technical background to fully understand and make competent decisions about complex technical issues that get more complex every year.

Pat Gelsinger

You can't get a more hard core Intel "Insider". Pat spent 30 years at Intel and was the first CTO. He was the "architect" of the 80486 and holds 8 patents including VLSI design. Pat Gelsinger Bio, at the very least he knows both Intel and the technology as good as anyone.

Likely delays Outsource decision

While there was an expectation , including from us, that Intel would have to fish or cut bait with a decision on wether or not to outsource manufacturing or not. We think that this decision is likely delayed as it is certainly a monumental decision not to be taken lightly nor made by an ex bean counter (no disrespect to all the CFOs reading this).

He also wouldn't take the reins just to ride Intel into the sunset of manufacturing. Our best guess is that a full decision is likely at least 6 months off. We may see an interim decision more quickly as a band aid or place keeper.


Decision now leaning more to insourcing

As the ex CTO and almost lifelong Intel employee with a strong technology background there is likely a strong bias to engineer and fight his way out of Intel's current manufacturing issues. He will also not likely be able to be "snowed" by excuses and other personality issues inside Intel.

A change in normal corporate maturity

We would suggest that many, if not most silicon valley technology companies see their founders leave as the company "matures" and are replaced by more "operational" or "financial" types over time.

The skill set of an inventor/entrepreneur is much different than operating an ongoing public company.
In the case of Intel, as we recently pointed out, the problem was technical not financial and perhaps more managerial lack of focus.
This "back to basics" type of move by the board seems to indicate a return to core values and philosophy.
This is not a turn around expert or "chainsaw Al" or undertaker but a "true believer".

The Stock...

Is obviously seeing a strong positive reaction as the board has heard investors and activists alike.
Not only is it positive for Intel but we think its a positive sign for the industry as well that we will likely get a better, more informed decision and outcome to what is wrong with Intel. We would suggest that it may take a while, likely a couple of quarters but investors should be patient that things will get better
I don't think Intel new CEO Pat Gelsinger will drop or even delay the outsourcing strategy. He doesn't have two years free time to resolve all the technical issues Intel is facing today. All Intel's competitors and customers won't give him such luxury.

To outsource some important Intel products is the best way, if not the only way, to hedge the short term and long term risks.
 

hga

New member
Is there any reason to believe Intel will be able to regain its ability to move to new process nodes? It's not uncommon for companies to lose a core technical ability and never regain it; here I'm not so much worried about Intel catching up to TSMC, but merely getting back into the game, so they're not solely depending on 14 nm chips for non-mobile markets.

Robert Maire's bringing our attention to another massive RIF right when Intel was trying to get its 10 nm node working probably helps explain why its only SKUs are mobile, are very, very late, and perhaps not very profitable. Its first EUV node, their 7 nm, is from what I've read officially delayed until late next year or 2023, is officially missing internal yield targets by 12 months. Do any of you with better insight into Intel see a path to victory for this node, or should we expect continuing delays absent Gelsinger being able to fix whatever's wrong with Intel the company?

I would very much like to be wrong about all this, as Mr. Maire pointed out in his article, this is very important for the US. I also wonder about x86's fate with so much of the world's planned capacity from Intel not contributing to it.
 

Daniel Nenni

Admin
Staff member

Intel Appoints Tech Industry Leader Pat Gelsinger as New CEO

News Highlights:
  • Bob Swan will remain in CEO role until February 15
  • Intel expects to exceed its previously communicated guidance for fourth-quarter 2020 revenue and earnings per share (EPS). Full fourth-quarter results will be released Jan. 21, 2021, as scheduled. The company has made strong progress on its 7nm process technology and will provide an update on its Jan. 21 earnings call.
Pat Gelsinger will become CEO of Intel on Feb. 15. 2021. (Photo: Business Wire)

Pat Gelsinger will become CEO of Intel on Feb. 15. 2021. (Photo: Business Wire)
January 13, 2021 09:37 AM Eastern Standard Time
SANTA CLARA, Calif.--(BUSINESS WIRE)--Intel today announced that its board of directors has appointed 40-year technology industry leader Pat Gelsinger as its new chief executive officer, effective Feb. 15, 2021. Gelsinger will also join the Intel board of directors upon assuming the role. He will succeed Bob Swan, who will remain CEO until Feb. 15.

Today’s announcement is unrelated to Intel’s 2020 financial performance. Intel expects its fourth-quarter 2020 revenue and EPS to exceed its prior guidance provided on Oct. 22, 2020. In addition, the company has made strong progress on its 7nm process technology and plans on providing an update when it reports its full fourth-quarter and full-year 2020 results as previously scheduled on Jan. 21, 2021.

Gelsinger is a highly respected CEO and industry veteran with more than four decades of technology and leadership experience, including 30 years at Intel where he began his career.

“Pat is a proven technology leader with a distinguished track record of innovation, talent development, and a deep knowledge of Intel. He will continue a values-based cultural leadership approach with a hyper focus on operational execution,” said Omar Ishrak, independent chairman of the Intel board. “After careful consideration, the board concluded that now is the right time to make this leadership change to draw on Pat’s technology and engineering expertise during this critical period of transformation at Intel. The board is confident that Pat, together with the rest of the leadership team, will ensure strong execution of Intel’s strategy to build on its product leadership and take advantage of the significant opportunities ahead as it continues to transform from a CPU to a multi-architecture XPU company.”

“I am thrilled to rejoin and lead Intel forward at this important time for the company, our industry and our nation,” said Gelsinger. “Having begun my career at Intel and learned at the feet of Grove, Noyce and Moore, it’s my privilege and honor to return in this leadership capacity. I have tremendous regard for the company’s rich history and powerful technologies that have created the world’s digital infrastructure. I believe Intel has significant potential to continue to reshape the future of technology and look forward to working with the incredibly talented global Intel team to accelerate innovation and create value for our customers and shareholders.”

“The board and I deeply appreciate Bob Swan for his leadership and significant contributions through this period of transformation for Intel,” continued Ishrak. “Under his leadership, Intel has made significant progress on its strategy to transform into a multi-architecture XPU company to capitalize on market shifts and extend Intel’s reach into fast-growing markets. Bob has also been instrumental in reenergizing the company’s culture to drive better execution of our product and innovation roadmap. He leaves Intel in a strong strategic and financial position, and we thank him for his ongoing guidance as he works with Pat to ensure the leadership transition is seamless.”

“My goal over the past two years has been to position Intel for a new era of distributed intelligence, improving execution to strengthen our core CPU franchise and extending our reach to accelerate growth,” said Swan. “With significant progress made across those priorities, we’re now at the right juncture to make this transition to the next leader of Intel. I am fully supportive of the board’s selection of Pat and have great confidence that, under his leadership and the rest of the management team, Intel will continue to lead the market as one of the world’s most influential technology companies.”

Most recently, Gelsinger served as the CEO of VMware since 2012, where he significantly transformed the company into a recognized global leader in cloud infrastructure, enterprise mobility and cyber security, almost tripling the company’s annual revenues. Prior to joining VMware, Gelsinger was president and chief operating officer of EMC Information Infrastructure Products at EMC, overseeing engineering and operations for information storage, data computing, backup and recovery, RSA security and enterprise solutions. Before joining EMC, he spent 30 years at Intel, becoming the company’s first chief technology officer and driving the creation of key industry technologies such as USB and Wi-Fi. He was the architect of the original 80486 processor, led 14 different microprocessor programs and played key roles in the Core and Xeon families.

About Intel
Intel (Nasdaq: INTC), is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

Forward-Looking Statements
Statements in this press release that refer to future plans and expectations are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” “will,” “would,” “should,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements that refer to or are based on estimates, forecasts, projections, uncertain events or assumptions, including statements relating to market opportunity and anticipated trends in our businesses or the markets relevant to them, also identify forward-looking statements. All forward-looking statements included in this release are based on management’s expectations as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially are set forth in Intel’s earnings release dated October 22, 2020, which is included as an exhibit to Intel’s Form 8-K furnished to the SEC on such date, and Intel’s SEC filings, including the company’s most recent reports on Forms 10-K and 10-Q. Copies of Intel’s Form 10-K, 10-Q and 8-K reports may be obtained by visiting our Investor Relations website at www.intc.com or the SEC’s website at www.sec.gov. Intel does not undertake, and expressly disclaims any duty, to update any statement made in this report, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law.

Contacts​

Trey Campbell
Investor Relations
+1 (503) 696 2829
trey.s.campbell@intel.com

Cara Walker
Media Relations
+1 (503) 696-0831
cara.walker@intel.com
 

Daniel Nenni

Admin
Staff member

Note from Pat Gelsinger to Intel​


Pat Gelsinger, who today was named chief executive officer of Intel Corporation, effective Feb. 15, 2021, sent the following note to all Intel employees:

I am thrilled and humbled to be returning to Intel as CEO. I was 18 years old when I joined Intel, fresh out of the Lincoln Technical Institute. Over the next 30 years of my tenure at Intel, I had the honor to be mentored at the feet of Grove, Noyce and Moore. Intel then helped me continue my education at Santa Clara University and Stanford University. The company also gave me the opportunity to work on the forefront of silicon innovation with the best and brightest talent in the industry.

My experience at Intel has shaped my entire career, and I am forever grateful to this company. To come back “home” to Intel in the role of CEO during what is such a critical time for innovation, as we see the digitization of everything accelerating, will be the greatest honor of my career.

I have tremendous regard for the company’s rich history and the powerful technologies created here that have transformed, and continue to transform, the world’s digital infrastructure. We have incredible talent and remarkable technical expertise that is the envy of the industry.

I look forward to working with all of you to continue to shape the future of technology. While Intel’s history is rich, the transformation from a CPU to multi-architecture XPU company is exciting and our opportunity as a world-leading semiconductor manufacturer is greater than it’s ever been. I will be sharing more in the near-term about my vision and strategy for Intel, but I know we can continue to accelerate innovation, strengthen our core business and create value for our shareholders, customers and employees.

I want to extend my gratitude to Bob for his leadership and significant contributions to Intel through this critical period of transformation. I welcome his counsel and ongoing guidance through the transition period to make it as seamless as possible for our customers and all of you.

I’m sure you will have many questions about what is to come, and I look forward to hearing them, even if I won’t have all the answers on day one. I can’t wait to resume this journey with all of you.

– Pat
 

Daniel Nenni

Admin
Staff member
BY the way, if you look at TSMC's CAPEX boost to $28B one could suggest that Intel will be moving significant volumes to TSMC at 3nm. Or AMD is planning on a big market share boost. Maybe both.
 

hist78

Active member
BY the way, if you look at TSMC's CAPEX boost to $28B one could suggest that Intel will be moving significant volumes to TSMC at 3nm. Or AMD is planning on a big market share boost. Maybe both.
I think it will be both. Both Intel and AMD want to stay in the TSMC's tier one customer group.
 

jmlobert

New member
How long will it take to Pat Geslinger to turn Intel around and how? Can Intel catch up to TSM?
I don't think this is the right question, Intel probably won't catch up on technology. The question is: Can Intel stay relevant and in the top three? Especially if they start outsourcing to TSMC, which, I think, would be a technical bankruptcy declaration.
 
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Daniel Nenni

Admin
Staff member
TJ called it:

 
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