The company’s stock price rose by more than 8% in early trading.
Intel, which has long been a global leader in chip manufacturing technology, has lost manufacturing advantages in recent years and is now debating whether to outsource some of its flagship central processing unit chips or CPUs, which will be released in 2023. Radical investor Third Point LLC last month, Intel’s board of directors sent a letter asking Intel to consider whether to keep its chip design and manufacturing operations under one roof.
Gelsinger is a former Intel executive who has served as VMware’s CEO since 2012. During this period, he successfully mentored the company, whose software helped the company squeeze out more work from data center servers by transitioning from a private data center to a public data center. The cloud provider, partly because of an important agreement with Amazon’s Amazon Web Services.
Geisinger joined Intel at the age of 18. After 30 years of working there, the company helped him enter Santa Clara University and Stanford University. In a letter to Intel employees, Kissinger compared his family to “going home.”
Geisinger said in a statement: “From the beginning of my career at Intel, to what I learned at the feet of Grove, Noyce and Moore, it is my honor and honor to return to this leadership ability. “I have deep respect for the company’s long history and the powerful technology that has created the world’s digital infrastructure.”
A source familiar with the matter told Reuters that Kissinger had previously rejected Intel’s top job, and it is not clear what changed his mind.
Dan Loeb of Third Point wrote to Intel’s board of directors at the end of last month, urging the company to curb the loss of engineers to rival companies, although he did not blame Swan for the company’s troubles.
People familiar with the matter said that on January 4, Swan met with Third Point CEO Dan Loeb and Intel Chairman Omar Ishrak. Loeb urged Intel to find new executives and potential new board members, and held at least one follow-up meeting.
VMware said it will start a CEO search, and the company’s chief financial officer Zane Rowe will serve as interim director after Gelsinger’s departure on February 12.
Intel also said on Wednesday that it expects to exceed its financial forecast for the fourth quarter of 2020 and has made “significant progress” in solving its 7-nanometer chip manufacturing technology issues.
Bernstein analyst Stacy Rasgon said of Gersinger’s appointment: “From a credibility point of view, he is great. He may be the majority The best of the people that people want to see.”
“He has worked there for a long career and is a technical expert, so he can solve both technical problems and cultural problems. The question is, what kind of boat he will be driving? Whether in the next two or three years, Who is there for the same.”
Swann was the former chief financial officer of eBay and the chief financial officer of Intel. He was appointed as the company’s interim CEO when Brian Kozanich resigned in June 2018. After extensive searches failed to produce external candidates, Swann was appointed as permanent CEO in early 2019.
© Thomson Reuters 2020
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