Intel CEO Pat Gelsinger's missteps have strained TSMC partnership, hindered turnaround efforts
When Pat Gelsinger took the helm as Intel's CEO in February 2021, hopes were high for a revival of the company.
Recap: Much ink has been spilled about Pat Gelsinger's missteps at Intel's helm. A new Reuters investigation uncovers some previously unreported details about his tenure, including how he botched a generous discount TSMC had given the US tech giant.
When Pat Gelsinger took the helm as Intel's CEO in February 2021, hopes were high for a revival of the company. However, three years into his tenure, Intel faces significant challenges and setbacks that have raised questions about its future and Gelsinger's leadership.
One of the earliest – and perhaps most significant – blunders by Gelsinger was his mishandling of Intel's relationship with Taiwan Semiconductor Manufacturing Company (TSMC), according to an investigation by Reuters in which the news service interviewed about four dozen current and former Intel employees and executives.
Gelsinger's return to Intel, where he had spent 30 years earlier in his career, was initially met with enthusiasm. Investors cheered his appointment, and employees celebrated having a technologist back in charge. However, the optimism was short-lived as Gelsinger made several missteps that would impact Intel's relationships and business prospects, starting with TSMC.
According to sources, despite receiving deep discounts from TSMC for chip production, Gelsinger made public statements that offended the Taiwanese company. "You don't want all of your eggs in the basket of a Taiwan fab," Gelsinger said in May 2021, referring to Taiwan's geopolitical situation. He later said, "Taiwan is not a stable place," at a tech conference in December of that year where he encouraged chip manufacturers to remain in the US.
These comments led to TSMC revoking the generous terms it gave Intel – about 40 percent off the $23,000, 3-nanometer wafers on which TSMC would print chips for Intel – affecting Intel's profit margins.
Gelsinger's vision for Intel included transforming the company into a major player in the foundry business, competing directly with TSMC. He announced plans to invest billions in new factories and develop advanced manufacturing processes.
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