Gelsinger, who took the helm at Intel in 2021, had promised to restore the chipmaker to its former glory. However, the company has continued to struggle in recent quarters, losing market share to rivals such as AMD and TSMC.
Intel's latest financial results were particularly disappointing. The company reported a net loss of $664 million in the fourth quarter of 2022, compared to a profit of $4.1 billion in the same period a year earlier. Revenue also fell by 32%, to $14 billion.
Analysts attribute Intel's struggles to a number of factors, including the company's delay in adopting next-generation chip manufacturing technology. Intel has also been hurt by the global chip shortage, which has driven up prices and made it difficult for the company to secure the components it needs.
Gelsinger's departure is a major setback for Intel. The company is now searching for a new CEO to lead it through this challenging period. Intel's board of directors has appointed Gelsinger to serve as interim CEO while it conducts a search for a permanent replacement.
Intel's new CEO will face a number of significant challenges, including:
- Catching up to rivals in chip manufacturing. AMD and TSMC have a significant lead over Intel in terms of chip manufacturing technology. Intel will need to invest heavily in its fabs to catch up.
- Improving profitability. Intel's margins have been shrinking in recent years due to increased competition and rising costs. The new CEO will need to find ways to improve profitability without sacrificing market share.
- Diversifying revenue streams. Intel has traditionally relied heavily on its PC chip business. The new CEO will need to explore new revenue streams, such as data center chips and automotive chips, to reduce the company's dependence on PCs.
Intel is at a critical juncture. The company has lost market share, profitability, and its CEO. The new CEO will face a number of significant challenges in turning Intel around. However, if Intel can successfully address these challenges, it has the potential to regain its position as a global chipmaking leader.