Intel’s new CEO, Pat Gelsinger, is facing significant challenges as he takes over the company. Under the leadership of previous CEO Brian Krzanich, Intel lost its process leadership and struggled to compete with rivals like AMD. Gelsinger has implemented a new strategy to transform Intel into a foundry that serves external customers and regain process leadership. The success of this strategy depends on chips designed by external customers, which won’t bring in revenue for a few more years. Gelsinger has also partnered with UMC to develop 12-nanometer technology, capturing depreciated cash flow for Intel. The future of Intel remains uncertain, but Gelsinger deserves a chance to execute his strategy.
https://stratechery.com/2024/intels-humbling/