Intel Leadership in Transition
Intel interim co-CEOs, Dave Zinsner and Michelle Johnston Holthaus, face critical decisions following the ousting of former CEO Pat Gelsinger. At the Barclays Technology Conference, Zinsner hinted at the possibility of formally splitting the company’s manufacturing and product-design divisions — a move that could reshape Intel’s operational structure.
A Divided Structure Already in Place
Currently, Intel’s manufacturing and product-development operations are operationally distinct, with separate oversight and financial accounts. Gelsinger had previously advocated for keeping the two divisions united, believing that collaboration between these units was critical for Intel’s success. However, the company’s ongoing struggles have reignited debate about whether a split could improve efficiency and focus.
Addressing Financial and Competitive Challenges
Intel’s interim leadership acknowledged the company’s financial and market challenges, emphasizing that restoring competitiveness will take time. Intel has faced setbacks in both personal computer chips and data center products, allowing rivals like AMD to capture market share.
Revamping Intel’s AI and Data Center Strategy
In the AI chip segment, Intel has struggled to compete with Nvidia’s dominance. Johnston Holthaus admitted that Intel’s Gaudi chips are difficult to use, and the company is now focusing on more generic graphics chips. Although initial offerings may lack sophistication, Intel plans rapid updates to improve their competitiveness.
A Shift in Communication Approach
Interim leadership plans to focus on tangible achievements rather than speculative long-term forecasts. Zinsner stated that Intel would avoid promoting “meaningless” metrics and instead concentrate on concrete progress. This shift in communication reflects a broader strategy to rebuild investor and customer confidence.
The Road Ahead for Intel
Johnston Holthaus emphasized the need for sustained investment in product development, even at the cost of short-term financial performance. Her focus for 2025 will be on halting market-share erosion, particularly in the data center segment, where AMD has outperformed Intel by offering products more aligned with customer needs.
What’s Next for Intel?
Intel’s next CEO will likely play a pivotal role in shaping the company’s strategy, including whether to formally separate its divisions. Meanwhile, the company must address mounting competition, invest in future technologies, and deliver measurable progress to regain its footing in the semiconductor industry.
Intel’s leadership transition and strategic reassessment signal a pivotal moment for the chipmaker, with major changes potentially on the horizon.