Intel CEO Steps Down Amid Tensions with the Board

Speculation mounts that Intel’s next move might be a business split as $Taiwan Semiconductor (TSM.US)$ shares rallied.

Sources revealed that former CEO Pat Gelsinger clashed with Intel’s board last week over progress in regaining market share and narrowing the gap with $NVIDIA (NVDA.US)$ . Gelsinger faced a choice between retiring or being dismissed, ultimately opting to end his tenure at Intel.

Gelsinger’s departure signals the failure of Intel’s foundry strategy. The next CEO’s most viable option may be to split off the foundry business and embrace TSMC fully, as $Advanced Micro Devices (AMD.US)$ has done. Years of investments have been undermined, shifting $Intel (INTC.US)$ ’s strategy from betting on “advanced nodes” to a “product-first” focus. The uncertainty surrounding the successful mass production of its 18A (1.8nm) process increases. Citi analysts warned that if the new CEO underperforms, Intel may fall further behind TSMC and AMD.