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Intel is under pressure to rethink its business and is expelling CEO

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Intel has refused to make Swan and Gelsinger available for interviews.

Many of Intel’s major leadership withdrawals in recent years have occurred under Brian Krzanich, CEO, who was deported in 2018 after an agreement-based incident with his subordinates. But Intel was hit last year when Jim Keller, a well-known engineer who helped overhaul the development process, left the company.

Former Qualcomm manager Benkata Lenduchintara, who was trying to help Intel recover from manufacturing problems, also started in 2020 after Intel announced that the next production process would be delayed.

Swan, 60, was credited with helping to ease internal conflicts and led the transformation aimed at bringing Intel into other markets, such as cellular base station gear. He also abandoned his sick business, sold a unit that designed a wireless chip to Apple, and made another unit to SK Hynix to make various memory chips.

However, analysts said he lacked the background to make rigorous technical decisions.

Patrick Moorhead, an analyst at Moor Insights & Strategy, said it took years to deal with chip issues and Swan did a lot, but that wasn’t enough. He added that he hopes Gelsinger will focus on the engineering culture of the enterprise.

Gelsinger faces a difficult problem. The first is how to deal with Intel’s manufacturing problems. In addition to improving engineering, Swan suggested that Intel could take a fundamental step in transforming some of its flagship chips beyond its factories. The company already uses TSMC to make some products, but outsourcing some of its most important processors will hurt Intel’s image. This issue will be addressed with Intel’s fourth quarter financial results on January 21st.

Third Point also raised the question of whether Intel should continue its design and manufacturing operations, and whether it should spin off failed acquisitions.

At the same time, Intel must counter the fierce competition between chip designers Advanced Micro Devices and Nvidia. Both take advantage of Asia’s advanced manufacturing services, and stock prices are skyrocketing while Intel is sluggish.

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