Intel remains “intensely focused on the search for a permanent CEO,” according to the company’s Chief Financial Officer and interim co-CEO David Zinsner speaking during Intel’s Jan. 30 earnings call. He added the company had nothing to report on finding the next CEO, although his attempt to shut down speculation seems to have only fueled more rumors.
Those rumors include the ascendence of GlobalFoundries CEO Thomas Caulfield to the CEO post at Intel following Pat Gelsinger’s departure last year.
Some of the rumors say a Caulfield move to Intel CEO seems more likely because GF on Feb. 5 announced, in a surprise to many, that Caulfield would move to executive chairman at GF on April 28, with Tim Breen named CEO. That move almost seemed like GF directors were trying to keep Caulfield close at home, and has sparked more speculation that Caulfield could be positioning GF for a partnership with Intel that would be focused on Intel’s foundry business as a separate company from Intel and its chip design business.
Intel and GF did not comment on the rumors. Caulfield could not be reached to comment.
Analysts opine on next Intel CEO possibles
Some analysts said in recent days that Caulfield as Intel CEO seems unlikely but were also circumspect about what will happen. Running Intel, whether the foundry on its own or the whole foundry-design business, would be a herculean task for any future CEO.
“I guess everything is on the table, but I think it unlikely” that Caulfield would become Intel CEO, said Jack Gold, principal analyst at J. Gold Associates, in comments to Fierce. “He just got promoted at GF. He’s done a good job running foundries, but running a massive company like Intel might be a stretch. He’s going to need more than just skills in foundry to succeed at Intel with all its various businesses.
“But the Intel board is unpredictable. so who knows?”
Patrick Moorhead, chief analyst at Moor Insights & Strategy had a similar take.
“Given that he was just installed as GF chairman, I don’t think so,” Moorhead told Fierce, referring to Caulfield assuming the Intel role.”He’s very qualified for the foundry role for sure, but my instinct is he’s not going to be Intel CEO.”
Mario Morales, long-time Intel observer at IDC, offered more reasons why Caulfield would not be the Intel choice, and had a candidate idea of his own.
"I don’t believe {Caulfield] is a good fit for Intel given GF's exit and pivot away from advanced technology development. GF employees have mentioned to me that Tom always had differences and opinions towards Intel that likely goes back to his days at IBM given some employees who were swooped up from GF to Intel as Intel began its foundry initiative. Let’s not forget that Intel evaluated acquiring GF before they went public which likely did not sit to well with the management team," Morales told Fierce.
"Finally, hiring Tom [Caulfield] [would be a mistake for the board given the culture of Intel."
"I still believe that the interim CEOs will likely become full time. Each part of Intel needs a different type of leader given the current issues with products and manufacturing, respectively," Morales added.
He said Intel board member Stacy Smith, appointed to his position nearly a year ago, could be a CEO candidate. Smith was chair of Auitodesk at the time.
One thing is for sure: both Intel and GF agree that neither company will comment “on rumors and speculation,” according to their spokespersons.
Intel foundry wishes include breakeven operating income by end of 2027
Even if Caulfield is or is not the next Intel CEO, the speculation again raises the value of a US based company working to meet the demands of US CHIPS Act guardrails to continue to qualify for a federal grant of more than $7 billion for new US fabs.
Zinsner pointed out that the Intel foundry today is “larger than all but one extermal foundry” with $18 billion in revenue but with a $13 billion operating loss in 2024. “We're going to systematically attack our costs and remain highly focused on our goal of delivering breakeven operating income for Intel foundry by the end of 2027, and we expect to demonstrate improvements this year.”
Intel began taking steps last September to turn its foundry into an independent business to be able to raise outside capital. That step was greeted warmly by investors and signaled to many a move toward a further separation of the foundry business from Intel.
Intel shares have dwindled downward since its earnings call on Jan. 30 and dipped even further after Caulfield was named as chairman of GF on Feb. 5. Shares were priced at $19.10 on Saturday, down nearly 4% over the prior month. GF shares gained after its Feb. 5 announcement and were up by 1.7% on Saturday over the prior five days to $8.43.
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