Intel CEO Pat Gelsinger Resigns as Chipmaker Faces Industry Challenges

Intel (INTC.O) Chief Executive Pat Gelsinger has resigned from his position less than four years after taking the helm of the struggling chipmaker. His departure, effective December 1, comes as Intel seeks to recover its status as a leader in the semiconductor industry, a title it lost to Taiwan Semiconductor Manufacturing Co (2330.TW), which produces chips for Intel’s competitors, including Nvidia (NVDA.O).

Gelsinger’s resignation occurred before the completion of an ambitious four-year plan aimed at restoring the company’s capability to manufacture the fastest and smallest computer chips. Despite Gelsinger’s assurances to investors and U.S. officials, who are providing subsidies for Intel’s turnaround, the full impact of these efforts will not be evident until next year when the company plans to bring a flagship laptop chip back into its own factories.

“While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence,” said Frank Yeary, independent chair of Intel’s board, in a statement.

Following Gelsinger’s departure, shares of Intel rose nearly 5% in premarket trading. However, the stock has seen a decline of more than 50% this year and was replaced last month by Nvidia on the blue-chip Dow Jones Industrial Average index.

In the interim, the company has appointed Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus as co-chief executive officers while the board conducts a search for a permanent replacement. The board has also formed a search committee to identify Gelsinger’s successor.