Intel CEO Bob Swan will step down on February 15 and be replaced by VMware CEO Pat Gelsinger. The chip giant said the change at the head of the group was unrelated to fourth quarter results. Intel said it expected to beat its fourth-quarter guidance provided on October 22. The company added that it “has made great strides in its 7nm processing technology” and will provide an update on January 21 when it releases its results.
The official news comes as Intel grapples with manufacturing issues and competition from companies like AMD and Nvidia. The latest generation of chips from Intel has experienced delays and AMD is gaining traction in the data center.
In addition, Intel faces competition from Arm-based processors such as Apple’s M1 chip. In the data center, large-scale cloud computing provider AWS is building its own custom processors based on Arm.
A strategy unveiled soon
Bob Swan, appointed CEO in January 2019, led the chip giant through a rough patch. Pat Gelsinger, a former Intel executive, has made VMware a dominant player in the hybrid cloud and forged a lucrative partnership with AWS. VMware is majority owned by Dell Technologies.
“I look forward to working with all of you to continue to shape the future of technology. While Intel has a rich history, the transformation from a CPU company to a multi-architecture XPU company is exciting and our opportunity as a leading semiconductor manufacturer is greater than ever. I will tell you more about my vision and strategy for Intel in the near future, but I know we can continue to accelerate innovation, to strengthen our core business and to create value for our shareholders, customers and employees, ”Pat Gelsinger said in a memo to Intel employees.
For his part, Bob Swan said that Intel is at the right time to change direction.
Omar Ishrak, Independent Chairman of the Board of Directors of Intel, added that the new CEO “will ensure a strong execution of Intel’s strategy to strengthen its product leadership and take advantage of the important opportunities before it. as it continues to transform from a CPU company to a multi-architecture XPU company ”.