Pat Gelsinger, the recently fired CEO of Intel, has received a major endorsement, with former CEO Craig Barrett saying he should be rehired and the board fired.
Pat Gelsinger announced his “retirement” in December 2024, but news soon surfaced that he was forced out of Intel, given the option to be fired or “retire.” Gelsinger chose the latter and went on to launch a startup of his own. Since forcing Gelsinger out, Intel’s board has considered a number of dramatic options to turn the company around, including splitting it in two and selling it off.
In an op-ed for Fortune, Barrett makes the case that “Intel is back” and the board needs to abandon any thought of chopping it up and selling it off. That doesn’t mean Intel isn’t still facing challenges, but Barrett says the company has the technology it needs to compete with, and even best, rival TSMC.
Intel is back—from a technology point of view. They are still struggling to attract independent chip designers, but they have the technology and manufacturing know-how to compete with the likes of TSMC. So, if Intel is back from a technology standpoint, what is the advantage of splitting up a company with 100,000-plus employees spread over several continents?
The former board members think that because Intel also makes and sells chips, no other chip designers will want to trust Intel to make their products. This thought process ignores the fact that the best technology wins in the semiconductor industry. All the independent designers currently use TSMC because TSMC has the best technology, so they don’t have any process technology advantage over each other. They are all using the same manufacturing technology to compete with each other and to compete with Intel chips. If Intel has equivalent or better technology than TSMC, then the game changes.
Intel failed in its previous efforts in the foundry business for the simple reason it did not have a competitive technology. The best technology wins, as you are at a disadvantage if you use an older version. Of course, Intel has to provide good customer service, fair pricing, guaranteed capacity, and a clear separation of chip designers from their foundry customers, but there is no disputing that the best technology wins. Intel used to lead in technology and chip design. They still struggle in chip design with the move to AI applications, but they are certainly back in manufacturing technology.
Intel’s Current Leadership Woes
Barrett goes on to make the case that Intel’s current leadership lacks the experience to help turn the company around, and that it needs to hire a CEO that will build on the progress Gelsinger made.
I ran Intel with 100,000-plus employees, and I think I know the challenges if Intel were to be split up. If we want semiconductor manufacturing leadership in the U.S., then build on the current resurgence of Intel, don’t tear it apart. The conversation should be who the next CEO should be to build on Pat Gelsinger’s accomplishments over the last few years. Currently the company is being run by a CFO and a product manager. The challenge for Intel is to get someone who understands the business of making chips, not someone who spends their time splitting the company into two pieces. Along the way, you might also worry about the Intel board. They bear ultimate responsibility for what has happened to Intel over the last decade.
Barrett closes his op-ed by calling for the board’s removal and the rehire of Gelsinger.
The moment you announce you are splitting up Intel you’ll lose the momentum and resources you need to succeed. In my opinion, a far better move might be to fire the Intel board and rehire Pat Gelsinger to finish the job he has aptly handled over the past few years.
Barrett’s op-ed is a damning indictment of Intel’s board and a major boost to Gelsinger’s legacy. There has been a growing consensus that Gelsinger’s actions were exactly what Intel needed, and it was the board who pulled the plug prematurely, before Gelsinger’s plan could fully reach fruition.
Apple’s Example
In many ways, Intel is in a similar position as Apple before the return of Steve Jobs. Like Intel, Apple had all the technology it needed to compete effectively, but it had a board that lacked the vision to help the company execute well.
Upon his return, Jobs asked for the resignation of most of the board, appointing replacements that had a better understanding of the company and the computer industry, as well as the vision necessary to support Jobs’ efforts.
Without specifically mentioning Apple and Steve Jobs, Barrett is essentially making the case for a Jobs-like solution to Intel’s problems.
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