Intel Deals With Challenges Amid CEO Change; Stock Down After Q4 Report
Intel continues dealing with challenges from surging demand and manufacturing issues amid its second CEO change in a few years, executives told investors on a Q4 call Thursday. The chipmaker made “tremendous progress” repairing “defects” in its 7-nanometer process technology,…
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and new CEO Pat Gelsinger will have final say on 2023 CPU product introduction decisions soon after he joins Feb. 15 (see personals section, Jan. 14), said outgoing CEO Bob Swan. There's nothing nefarious in the board’s decision to replace Swan with Gelsinger, just part of its normal “succession planning process,” said Chairman Omar Ishrak. Gelsinger said he will share his “detailed perspective” on Intel after he assumes his new role: “Based on initial reviews, I am pleased with the progress made on the health and recovery of the 7-nanometer program. I am confident that the majority of our 2023 products will be manufactured internally.” PC demand in 2020 “was off the charts,” giving Intel Q4 share gains, especially in consumer entry-level and education laptops, said Swan. “Those two segments tend to be lower margin,” he said: “Real strong demand” taxed Intel’s ability to keep up with CPU supply. The stock closed 9.3% lower Friday at $56.66.