Pat Gelsinger, Intel's recently departed CEO, was against splitting the company, as revealed in a 2022 interview. His stance sheds light on the potential reasons behind his departure.
Gelsinger's sudden retirement, given his previously optimistic outlook, raised questions. A 2022 interview with Stratechery offers a possible explanation. When discussing his business strategy, Gelsinger stated:
"...I wrote a strategy document for the board of directors and I said if you want to split the company in two, then you should hire a PE kind of guy to go do that, not me. My strategy is what’s become IDM 2.0 and I described it."
Intel's financial struggles have led to considerations of a business separation, splitting its manufacturing and chip design operations. This directly contradicts Gelsinger's IDM 2.0 strategy, which focused on in-house production. Despite his strong advocacy for Intel Foundry Services (IFS), the division's performance hasn't met expectations.
Gelsinger's 2022 statement, combined with his recent defense of Intel's 18A process, suggests he remained committed to IFS. However, the company's economic difficulties and the strategic importance of IFS likely contributed to his departure.
While this is just one theory, the underperformance of IFS and the pressure to potentially split the company seem to have played a significant role in Gelsinger's resignation.
