New CEO, New Plans, New Profits: Don’t Miss This Semiconductor Turnaround Story

All that is set to change as this company looks to turn things back around and hand investors lucrative payouts.

I’m talking about none other than Intel Corp. (INTC), which is probably the single most influential company behind the personal computer revolution.

Intel appointed a new CEO, and he’s already making big waves.

His name is Pat Gelsinger, and he was most recently the CEO at VMware Inc. (VMW) for eight years. There, he led VMware to success, having the Silicon Valley cloud computing company specializing in how to split cloud servers into several more “virtual servers.”

With a Master’s Degree from Stanford University and a life-long career in Silicon Valley, you might think Gelsinger comes from a highly tech-oriented family.

In fact, he was born on a farm in a region of Pennsylvania with a large Amish population. His first job was actually at Intel, where he started working after finishing his Associate’s Degree.

He studied for his Bachelor’s while at Intel, and stayed there for three decades, eventually becoming Intel’s first-ever Chief Technology Officer. He also reached the rank of senior vice president and general manager of Intel’s Digital Enterprise Group.

For his plan to turn around the company, Gelsinger wants to focus on the firm’s core expertise and improving margins.

In part, that means outsourcing some chip production to other companies, something that Intel has historically avoided. But in recent years, this has meant that it was stuck making its chips on older, larger technology.

Meanwhile, competitors had access to newer, smaller generations of chips.

It’s not all about outsourcing to cut costs, however. Only some chip production will be outsourced under Gelsinger’s plan so that his company can catch up technologically.

The other side of his plan is a massive $20 billion investment in two new chip factories at Intel’s existing plants in Arizona. This will allow Intel to fill the supply shortage in chips that are causing slowdowns in the production of cars, computers, consoles, and TVs all over the world.

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William K. 2 months ago Member's comment

One benefit of NOT producing ICs in China is the reduced probability of tampering with the designs and planting assorted malware in the structure. THAT has been a problem with some products coming from China in the recent past. Not publicized but real. And noticed by the defense department as well.

But the role of the CEO is not engineering, it is directing and often Intel has gone in the right direction. So it will probably continue to do that.

Adam Reynolds 2 months ago Member's comment

There's too little regulation in China. It's a wild west where pretty much anything goes... at least until you cause problems for the ruling party.