Intel is replacing its CEO after only two years in what had been a rough stretch for the chipmaker.
The choice of Gelsinger, who started his career as an Intel engineer decades ago, puts the semiconductor pioneer back in the hands of a tech expert at a time when it is struggling to keep up with market changes and growing competition.
“The CEO has to understand what’s going on with this market and how to respond to it," said Glenn O’Donnell, an analyst at
Intel's stock jumped 7% Wednesday on news of the change at the top.
The
Intel acknowledged in late December that it had received a letter from the
Intel spokesman
Intel Chairman
In mid-2020, Intel disclosed that there would be a substantial delay in its development of a next-generation chip-making process already in use by other major suppliers, including
The unexpected snag meant that Intel’s 7-nanometer processing technology is unlikely to be ready until the end of 2022 or early 2023, potentially putting the company behind its rivals.
Apple also dealt a blow to Intel last year when it began replacing Intel processors with Apple-designed chips on new Mac computers. And it faced yet another challenge when
Gelsinger has been the CEO of software company
Swan, a former chief financial officer at Intel, assumed interim leadership in 2018 after CEO
Swan's finance background, including top finance roles at eBay and several other firms, marked a shift for Intel, which has mostly had engineers at the top since its 1968 founding, though its fifth CEO was an economist.
Swan said in a prepared statement Wednesday that it is the right time for a transition and that he fully supports Gelsinger's arrival.
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AP Business writer
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