Intel adds former ASML CEO and interim Microchip Technology CEO to board of directors; what did the former CEO do wrong?

ASML , and Steve Sanghi, chairman and interim CEO of Microchip Technology, to its board of directors.

Intel Appoints Semiconductor Leaders Eric Meurice and Steve Sanghi to Board of Directors :: Intel Corporation (INTC)
https://www.intc.com/news-events/press-releases/detail/1721/intel-appoints-semiconductor-leaders-eric-meurice-and-steve

At Intel, former CEO Pat Gelsinger just retired on December 2, 2024. Currently, Chief Financial Officer David Zinsner and Client Computing Division General Manager Michelle Johnston Holthaus are serving as interim CEOs, but the selection of the next CEO is underway.

Intel begins compiling list of candidates for CEO to replace Gelsinger, who will be the next CEO? - GIGAZINE

Eric Morris served as CEO of ASML from 2004 to 2013, during which time he increased ASML's market capitalization five-fold. In addition to his current position as Intel's CEO, Eric Morris said he plans to work with the other directors to further strengthen Intel's market competitiveness and achieve sustainable financial performance.

Steve Sanghi was CEO of Microchip Technology from 1991 to 2021 and currently serves as chairman and interim CEO. During his 30-year tenure, he grew the company's market capitalization from approximately $10 million to approximately $44 billion and achieved 121 consecutive quarters of profitability.

Intel has been in a slump in recent years, with its market capitalization falling by more than 60% from $251 billion (about 37.7 trillion yen) to $103 billion (about 15.5 trillion yen) during Gelsinger's tenure as CEO of Intel from 2021 to December 2, 2024.

Intel announces CEO Pat Gelsinger's retirement, 'thanks to my colleagues around the world who have worked with me as part of the Intel family' - GIGAZINE

Intel is a company that designs and manufactures semiconductors that are essential for modern electronic devices. Although Intel once manufactured the world's highest-performance semiconductors, over time it lost out to TSMC and Samsung Electronics in the technology race and ceded its cutting-edge position. Gelsinger became CEO of Intel in 2021 with a clear mission to 'catch up' with these semiconductor companies.

In the semiconductor industry, companies like NVIDIA, which designs, and TSMC, which manufactures, have specialized in either design or manufacturing. Gelsinger went against the trend in the semiconductor industry and made large investments in the construction of chip manufacturing plants, saying that 'the chip manufacturing division is the key to restoring Intel's position as a chip manufacturer.'

Intel set a goal of becoming the world's second largest contract chipmaker after TSMC by 2030, and not only manufactured its own products but also took on orders to manufacture semiconductors from outside companies. However, the company has been struggling with quality issues and an internal culture that is not accustomed to accepting orders from outside companies, and the company has been in a difficult situation, recording a deficit of $16.6 billion (approximately 2.5 trillion yen) in the third quarter of 2024.

Report reveals that Intel's semiconductor manufacturing business failed to pass Broadcom's test - GIGAZINE

It is unclear what kind of person will be appointed as the next CEO, but some analysts believe that the only way to revive Intel is to split up its foundry business, which is its manufacturing division. With the departure of Gelsinger, who focused on integrating design and manufacturing, it seems likely that Intel will be split up.