Pat Gelsinger was just named as Intel’s new CEO earlier this week and it seems to be starting boldly after a recent employee meeting where Gelsinger told employees that Intel needs to deliver better PC products than any product from that “Cupertino lifestyle company.” Uch.
Following a rocky period removed by several delays in the development of Intel chips and several major declines in its share price in 2020, many analysts demanded Intel will replace outgoing CEO Bob Swan.
As a longtime employee of Intel and one of the original architects of the Intel 80486 processor, Gelsinger – who is leaving his former position as CEO of VMware – is seen as a product-focused expert, which many hope will be able to bring back. on Intel in the days when its chips enjoyed significant performance advantages over competitors such as AMD and ARM.
In accordance with Oregonian, who reported on the recent employee meeting, Gelsinger will have to lead future Intel processors, while the company is trying to decide whether or not to outsource chip production to third-party foundries owned by TSMC or possibly Samsung. With companies such as AMD, Apple and others making the switch to 7nm and 5nm nodes recently for the latest chips, Intel’s ongoing struggles to switch to its own 7nm process have led to numerous accesses to Intel in terms of both performance, as well as the general market share. .
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More importantly, Apple has become quite competent in chip design and recently began to make the transition to its entire line of PCs In addition to its ARM-based chips, Intel will lose a significant amount of sales, as it is estimated that Apple will account for up to 5% of Intel’s annual revenue. In addition, with Apple looking to swallow more of the desktop and laptop market, and AMD has overtaken Intel’s processor based on a dollar-to-dollar performance ratio, Intel will have to make some strong moves to straighten the ship.
“We need to deliver better products to the computer ecosystem than anything a Cupertino lifestyle company can,” Gelsinger said. “When done well, [our research and manufacturing] established Intel as a leader in all aspects. ”
However, for a company that faced significant obstacles in terms of both the production and design of the chips, even for a Well-respected veteran like Gelsinger, bringing Intel back to its former glory will be a massive challenge.
Gelsinger’s official term as Intel’s new CEO will begin on February 15th.