Intel CEO Bob Swan will step down subsequent month, the pc chip big mentioned on Wednesday, weeks after a hedge fund despatched a letter demanding modifications in its enterprise.
“Intel today announced that its board of directors has appointed 40-year technology industry leader Pat Gelsinger as its new chief executive officer, effective February 15, 2021,” the corporate mentioned in an announcement. “He will succeed Bob Swan.”
Though it mentioned the announcement was “unrelated” to Intel’s monetary efficiency, the choice follows a December letter to the corporate from Third Point, led by activist investor Daniel Loeb.
The hedge fund advised the corporate it ought to take into account outsourcing its manufacturing operations to maintain tempo with rivals within the sector equivalent to Taiwan-based TSMC and South Korean big Samsung, amongst others.
“We suggest the board retain a reputable investment advisor to evaluate strategic alternatives, including whether Intel should remain an integrated device manufacturer and the potential divestment of certain failed acquisitions,” the letter acknowledged.
While Intel stays one of many world’s main chip firms, it has lagged behind rivals within the fast-growing phase of cell units, and its chips are being phased out by Apple, which is creating its personal microprocessors for its Mac computer systems.
Swan was made interim chief government in 2018 and appointed completely the subsequent yr after his predecessor Brian Krzanich resigned over a relationship with an worker that violated an organization non-fraternization coverage.
Gelsinger is at present CEO of software program agency VMware however spent 30 years at Intel and likewise served as chief working officer of EMC’s Information Infrastructure Products division, the corporate mentioned.
Intel’s inventory was up 8.5 p.c round 1500 GMT.
(Except for the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)