Intel appoints Pat Gelsinger as new CEO - Industry - News

Shares of Intel surged about 10 per cent as the chipmaker named VMware head Pat Gelsinger as its new chief executive, replacing Bob Swan after pressure from activist investors.

Gelsinger is an industry legend who was critical in creating and building VMware into the virtualization and software powerhouse it is today, having led VMware for the past eight and a half years. "In addition, the company has made strong progress on its 7nm process technology and plans on providing an update when it reports its full fourth-quarter and full-year 2020 results as previously scheduled on January 21, 2021", Intel said.

For those in the know, it was no secret that Gelsinger coveted the CEO role before his departure 12 years ago.

Third Point's Dan Loeb had sent a letter to Intel's board of directors late last month urging the company to rein in an outflow of engineers to rival firms, though he stopped short of blaming Swan for the company's troubles.

Intel CEO Bob Swan is to step down as of February 15, according to CNBC.

Intel Corporation CEO Bob Swan speaks outside the Fab 42 microprocessor manufacturing site in Chandler, Ariz., on October 2, 2020.

In the summer of 2020, Apple announced that it was severing its partnership with Intel to favor its own custom silicon instead.

Swan said in a prepared statement Wednesday that it is the right time for a transition and that he fully supports Gelsinger's arrival.

"He had a long career there and he's technical, so he can address both the technical issues and cultural issues".

Swan was made permanent chief in early 2019 after an extensive search failed to yield an external candidate.