Intel Adds Two Veteran Semiconductor Leaders To Its Board

As Intel’s board of directors searches for a new permanent leader and pushes for better execution of its strategy after CEO Pat Gelsinger’s abrupt exit on Sunday, the beleaguered chipmaker adds two veteran semiconductor leaders to its board.

Intel said it has added two veteran semiconductor executives to its board of directors: former ASML CEO Eric Meurice and interim Microchip Technology CEO Steve Sanghi.

The semiconductor giant announced the board appointments on Thursday, three days after it said that CEO Pat Gelsinger had abruptly retired on Sunday. The board named two-year CFO David Zinsner and Client Computing Group leader Michelle Johnston Holthaus as interim co-CEOs as it begins a search for Gelsinger’s permanent successor.

Intel’s stock price was down less than 1 percent in early trading Thursday.

Reports by Bloomberg and CNBC earlier this week said Intel’s board of directors gave Gelsinger a choice to retire or be fired after it had lost confidence in his comeback plan, which has involved spending tens of billions of dollars to expand Intel’s manufacturing footprint and advanced chip-making capabilities to build a foundry business.

With the addition of Meurice and Sanghi, Intel’s board is getting additional expertise in the semiconductor industry as it pushes for greater execution in its chip design business and more incremental returns on Intel’s investments in its contract chip-making operation.

“Eric and Steve are highly respected leaders in the semiconductor industry whose deep technical expertise, executive experience and operational rigor make them great additions to the Intel board,” said Frank Yeary, interim executive chair of Intel’s board, in a statement.

“As successful CEOs with proven track records of creating shareholder value, they will bring valuable perspectives to the board as the company delivers on its priorities for customers in Intel Products and Intel Foundry, while driving greater efficiency and improving profitability,” he added.

Meurice, Sanghi Have A Wealth Of Semiconductor Expertise

From 2004 to 2013, Meurice served as president and CEO of ASML, a Netherlands-based company that is the world’s only maker of extreme ultraviolet lithography (EUV) machines, which are a critical tool in the manufacturing of advanced chips.

Intel said Meurice was “instrumental in establishing ASML’s Customer Co-Investment Program, under which Intel and others agreed to invest in ASML’s research and development of next-generation lithography technologies, including EUV lithography.”

“I am thrilled to join Intel’s board as the company completes a historic pace of process technology innovation and transforms its business for the future,” said Meurice in a statement. “I look forward to working with my fellow directors to further enhance Intel’s market competitiveness and deliver sustainable financial performance.”

Sanghi is the chairman and interim CEO of Microchip Technology, a Chandler, Ariz.-based manufacturer of microcontroller, mixed-signal and analog chips. He previously served as Microchip’s CEO from 1991 to 2021, which Intel pointed out makes him “one of the longest-serving CEOs of a semiconductor company.”

Intel also noted that Sanghi led Microchip through “121 consecutive quarters of profitability” and helped grow its market value from $10 million to $44 billion over his 30-year tenure.

“I am excited to lend my experience and perspective as Intel executes one of the most consequential corporate transformations in decades,” said Sanghi in a statement.

“Intel is well-positioned to capitalize on attractive opportunities across its product and foundry businesses, and I’m eager to work with the board and management team to deliver on the goals the company has set,” he added.

Both executives have previously served in leadership roles at Intel.

Interim Intel Co-CEO: “The Core Strategy Remains Intact’

At a Wednesday investor conference, Zinsner said that Intel’s “core strategy remains intact,” but he added that while it still wants to be a “world-class foundry,” the board wants company leadership to “also put emphasis on execution around the product side of the business.”

The interim co-CEO added that the board is pushing for more incremental returns on the massive investments Intel has put into its manufacturing operations and foundry business.

“I’d say the one thing that has definitely come out of the way the board’s thinking about this is they do recognize and have pushed us that, ‘Hey, we made a lot of investment from a capital perspective in Foundry, and we need to start seeing some incremental [return on invested capital] on those investments,’ and so, and that's what we're committed to do. That’s going to be one of my major focuses,” Zinsner said.

Recently Exited Board Member Among Intel’s CEO Candidates

The board lost one of its semiconductor experts—Lip-Bu Tan, the executive chairman of chip design tool provider Cadence Design Systems—in August. Tan reportedly clashed with Gelsinger and other board directors over his concerns about Intel’s “bloated workforce, risk-averse culture and lagging [AI] strategy,” Reuters reported then.

The board is now considering Tan as one of the candidates for Intel’s next CEO alongside Marvell Technology CEO Matt Murphy and other outsiders, Reuters said on Tuesday. Both reports cited anonymous sources familiar with the discussions around the issues.