Recruiting Intel tech experts instead of finance experts
Attention to the possibility of cooperation with Samsung Electronics
[아시아경제 뉴욕=백종민 특파원] Intel, the world’s largest semiconductor company, has replaced the CEO. It is interpreted as a move aiming for a leap forward by changing the CEO from a finance expert to a technology expert. Intel’s stock price surged on the news of the CEO change.
According to the Wall Street Journal on the 13th (local time), Intel announced that it had hardened CEO Bob Swon and appointed VMware’s CEO Pat Gallsinger as the new CEO. This happened after Third Point, an activist investment fund, bought a stake and demanded a change from Intel.
After joining Intel as Chief Financial Officer in 2016, Swon became a temporary CEO and has been a CEO since 2019. Since then, Intel has struggled with the failure to introduce the 7-nano microprocessor for manufacturing the central processing unit (CPU) for PC. Intel has struggled with Nvidia, which has lag behind its traditional rival AMD and has expanded its scope to cloud and autonomous driving.
In recent years, Third Point has emerged as a major shareholder of Intel and sent a letter stating that management changes are necessary, such as selling some businesses or entrusting design and manufacturing to Samsung Electronics or TSMC in Taiwan.
Intel’s board chairman Omar Ishrak said, “The Intel board decided it was a good time to replace the CEO in order to take advantage of Galsinger’s technical and manufacturing expertise.” “Swon CEO change is a welcome thing for Intel’s shareholders,” said Daniel Rob, Chairman of Third Point.
Pat Galsinger was the chief technology officer in Intel’s heyday in the mid-2000s. Galsinger worked as a Chief Technology Officer (CTO) until he moved to EMC, a data specialist in 2009, introducing Core 2 Duo CPUs and leading Intel’s heyday. Intel’s 286,386, 486, Pentium and other CPUs went through his hand. This is the reason why Intel was concerned about the weakening of Intel’s technology after Galsinger’s resignation. It was also in contrast to how rival AMD made progress after appointing technology expert Liza Su as CEO.
This CEO replacement is particularly noteworthy in that it took place at the point when it is expected that Intel will sign a semiconductor consignment manufacturing (foundry) contract with Samsung Electronics and Taiwan TSMC.
Bloomberg News reported that Intel is considering outsourcing CPU production to TSMC or Samsung Electronics from 2023. It is expected that the decision to produce consignment will be announced when the results of the fourth quarter of last year, scheduled for the coming 21st, are disclosed.
On that day, Intel predicted that the fourth quarter of last year’s results will exceed the forecast announced in October, and annual sales will also show strong performance. It also emphasized that progress has been made in the development of new CPUs.
The stock market welcomed news of Intel’s CEO replacement. In the New York Stock Market on this day, Intel’s stock price is soaring 9% compared to the previous day.
New York = correspondent Baek Jong-min email@example.com
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