Falling far behind in the industry, Intel 'cuts' generals

Mr. Gelsinger failed to lead Intel to success in the AI chip segment, and also forced the company to sell many assets and lay off employees due to ineffective spending.

Bị tụt hậu xa trong ngành, Intel 'trảm' tướng - Ảnh 1. — Former Intel CEO Pat Gelsinger - Photo: REUTERS

On December 2, Intel announced that its CEO Pat Gelsinger would no longer be in office as of December 1. As Intel's leader from 2021, Mr. Gelsinger was expected to help "reverse" the company's dire situation. But so far, Intel has stagnated and fallen far behind its competitors.

According to Bloomberg News, Intel CFO David Zinsner and product executive Michelle Johnston Holthaus will jointly serve as interim CEOs of the iconic chipmaker.

Before the above information, Intel's stock increased nearly 4% on the morning of December 2 (US time).

When he took over Intel three years ago, Mr. Gelsinger was expected to be the company’s savior. Now 63, Mr. Gelsinger had worked at Intel since he was a teenager, leaving in 2009 to become CEO of VMware Inc.

Returning to Intel in 2021, Mr. Gelsinger pledged that he would restore Intel's status as a giant, after the chip company had been surpassed by rivals such as TSMC.

During his tenure, Mr. Gelsinger aimed to turn Intel into a manufacturer of made-to-order chips for other companies, an area where TSMC and Samsung Electronics have excelled.

That plan includes building a massive new complex in Ohio, a $20 billion project for which Intel received federal aid from the Biden administration’s Chips and Science Act.

Intel also expanded its workforce to 132,000 people, higher than the level it maintained when it was the leading chip maker.

According to Reuters, the heavy spending coincided with the collapse of the post-COVID-19 PC and laptop market, causing Intel's gross profit margin to fall far below historical norms and depressing its stock price.

Intel has since had to lay off a number of employees and sell or transfer potential assets.

Mr. Gelsinger also failed to lead Intel in the artificial intelligence (AI) chip race and let Nvidia leave it far behind in this field.

“Stocks have fallen more than 60% during his tenure, so this isn’t a huge surprise,” said Ryan Detrick, chief market strategist at investment advisory firm Carson Group.

Mr. Detrick commented that Intel's new leadership is expected to "overturn" what Intel did under Mr. Gelsinge.

Intel pledges to continue investing in Vietnam

Responding to Tuoi Tre Online in July 2023, Mr. Kim Huat Ooi - Vice President in charge of manufacturing, supply chain and operations and General Director of Intel Products Vietnam Company - said that Intel has invested 1.5 billion USD and will continue to invest in Vietnam.

"I am very proud to share that Intel Products Vietnam is now the largest of the four factories in terms of assembly and testing. 2022 has marked and affirmed the importance of Vietnam to Intel and the importance of Intel to Vietnam.

Such performance and efficiency results have further reinforced our need to continue investing further in Vietnam. By the end of 2021, we had invested $1.5 billion. We want to continue investing and this is certainly what Intel will do," said Mr. Kim Huat Ooi.

Source: https://tuoitre.vn/bi-tut-hau-xa-trong-nganh-intel-tram-tuong-20241202234323709.htm