Intel’s troubles began in 2005 when it missed opportunities to make a processor for the iPhone and abandoned its ARM-based mobile chip business. The subsequent failure to release 10nm chips on time and the collapse of the Larrabee discrete GPU project allowed competitors such as AMD, NVIDIA and TSMC to take the lead.
Gelsinger unveiled a bold turnaround plan that involved breaking up Intel’s manufacturing and design divisions and building new chip factories. But setbacks continued, including problems producing the latest Intel Core processors and TSMC’s refusal to offer discounts following Gelsinger’s comments about Taiwan’s instability.
Although Gelsinger faces structural problems that require a long-term solution, Intel’s board has reportedly grown impatient with the slow pace of progress.
The next CEO will face the same challenges: outdated production processes, loss of technology leadership, and the need to rebuild trust.
Source: Ferra
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