intel eyes tsmc talent for ceo role in leadership shake-up
Taipei, Thursday, 5 December 2024.
Intel is considering executives from Taiwan Semiconductor Manufacturing Company (TSMC) for its next CEO, following the retirement of Pat Gelsinger. This move underscores TSMC’s prominence in the semiconductor industry. Insiders report that TSMC’s executive team, known for its advanced chip manufacturing capabilities, is being evaluated for their potential to guide Intel through its current challenges. Intel faces stiff competition from tech giants like AMD and Nvidia and is working to revitalize its manufacturing processes. The search for external leadership marks a significant shift for Intel, traditionally led by internal candidates. The outcome of this decision could shape Intel’s future in the global tech market. With TSMC’s proven track record, these executives are seen as key figures who could potentially bring a fresh perspective to Intel’s strategic direction.
TSMC executives emerge as potential candidates
Intel’s search for a new CEO has expanded to include several high-profile TSMC executives [1][4]. Among the potential candidates are TSMC’s Senior Vice President Kevin Zhang and Senior Vice President and Co-Chief Operating Officer Y.J. Mii [1]. Former TSMC Chairman Mark Liu, who retired in early 2024, is also being considered due to his previous experience at Intel [1].
Intel’s strategic shift and financial challenges
The leadership change comes at a crucial time for Intel, which has faced significant financial headwinds. The company reported a $16.6 billion loss under Gelsinger’s leadership, with shares dropping 60% during his tenure [6]. In response to these challenges, Intel announced plans in August 2024 to reduce its workforce by 15%, affecting approximately 15,000 employees, aiming to save $10 billion by 2025 [6].
External candidates under consideration
Beyond TSMC executives, Intel is actively pursuing other industry leaders. The company has approached Marvell Technology CEO Matt Murphy and former Cadence Design Systems CEO Lip-Bu Tan [4]. This external focus represents a departure from Intel’s traditional preference for internal promotions [3]. The company has enlisted Spencer Stuart, an executive search firm, to assist in the selection process [4].
Manufacturing capabilities gap
TSMC’s appeal as a source for leadership talent stems from its superior manufacturing capabilities [1]. The company currently produces advanced chips for major tech companies including Apple, AMD, and Nvidia [1]. Intel’s interest in TSMC executives reflects its strategic priority to close the manufacturing technology gap that has emerged between the two companies [6].