Intel’s Search for a New CEO: A Break from Tradition
The sudden departure of Pat Gelsinger as CEO of Intel Corp. has sent shockwaves through the tech industry, leaving the company scrambling to find a new leader. In a break from tradition, Intel is looking beyond its own walls for talent, considering candidates from Marvell Technology Inc. and former Cadence Design Systems Inc. CEO Lip-Bu Tan.
A Shift in Strategy
Intel has enlisted the help of executive search firm Spencer Stuart to find a new chief, evaluating candidates from both within and outside the company. This marks a significant shift in strategy, as Intel has historically promoted from within. However, years of management turnover have depleted the company’s bench, making it harder to find a suitable replacement from within.
External Candidates in the Running
Marvell Technology Inc. head Matt Murphy and former Cadence Design Systems Inc. CEO Lip-Bu Tan are among the external candidates being considered for the top job. Marvell shares slipped 2.3% on Tuesday following the news, while Intel’s stock fell more than 5%.
Internal Candidates: A Limited Pool
With the company’s executive training program still in recovery mode, internal candidates are limited. Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus are serving as interim co-CEOs, but analysts question whether they have the technical expertise to lead the company long-term.
Old Intel Executives: A Possible Solution
One way to balance the insider-outsider equation would be to hire an old Intel executive who left during the management tumult of recent years. Candidates like Stacy Smith, a former Intel executive who joined the company’s board this year, or Gregory Bryant, who ran Intel’s personal computer unit, could bring the necessary experience and background to the role.
Customers as Potential Recruits
Intel’s biggest customers, many of which have embarked on their own chip programs, could also be a recruitment pool. Johny Srouji, senior vice president of Apple Inc.’s successful internal chip unit, is one example. Microsoft Corp., Alphabet Inc.’s Google, and Meta Platforms Inc. have also built significant chip teams.
The Challenges Ahead
Whomever Intel chooses, the new CEO will face significant challenges, including making up for lost revenue and competing in an intense cycle of innovation. The company’s plan to build additional factories in the US is a cornerstone of the federal government’s push to make more chips on American soil.
A Tall Order
Analysts agree that finding a new leader with the credentials to lead Intel out of this challenge will be no easy feat. The company needs someone who can balance technical expertise with strategic vision, and who can win over competitors and turn them into customers for its outsourced manufacturing business.
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