From IDM 2.0 To Intel’s $5.4B Tower Semiconductor Deal
Tuesday last week marked Pat Gelsinger’s one-year anniversary as Intel’s CEO, and he decided to celebrate the occasion by announcing the company’s intent to acquire an Israeli chip manufacturer, a move that will “significantly” advance the hybrid manufacturing strategy he declared early in his tenure.
Intel’s deal to acquire Tower Semiconductor for $5.4 billion is but one of several big moves Gelsinger has made since he started his role as Intel’s CEO on Feb. 15, 2021. And all the developments have been in the name of restoring Intel’s reputation as the “unquestioned leader” after falling behind competitors — both fabless chipmakers like AMD and chip foundries like TSMC – for years.
The efforts of Gelsinger in his first year as CEO culminated with a presentation at the Intel Investor Day 2022 meeting last week, where he and other executives detailed a four-year comeback plan that would require a large amount of spending to make Intel the leader once again. While Gelsinger’s return and his comeback plan have brought back a sense of optimism for many Intel employees, investors were skeptical of the plan and sent Intel’s stock price down more than 5 percent last Thursday.
“The Intel turnaround train is leaving the station, and I hope you all get on board. It’s an ambitious goal. But I am confident Intel’s best days are in front of us,” Gelsinger said in his presentation.
What follows are 10 big moves made by Gelsinger in his first year as CEO, which includes the Tower Semiconductor deal, the creation of Intel Foundry Services, several new leadership appointments, a reorganization of the company’s business units and his Mobileye spinoff plan, among other things.