Intel CFO @ UBS Global Technology Conference "Core Strategy Remains Intact"

we gleaned some insights as to what may have triggered the BoD to oust the CEO

Coming just two days after Mr. Gelsinger’s shock departure from Intel, the fireside chat with Intel CFO David Zinsner and the newly on-boarded GM of IFS at the UBS Global Technology Conference was of particular interest to us. For some background, that GM is Dr. Naga Chandrasekaran. He joined Intel just a few months ago, back in August 2024, replacing Keyvan Esfarjani as the head of Foundry Manufacturing and Supply Chain, details here.

Prior to Intel, he had a long & distinguished career at Micron:

During more than 20 years at Micron, Chandrasekaran served in various senior leadership roles. Most recently, he led Micron’s global technology development and engineering efforts related to the scaling of current memory technologies, advanced packaging technology and emerging technology solutions. Previously, he served as Micron’s senior vice president of Process R&D and Operations. His experience spans the breadth of semiconductor manufacturing and R&D, including process and equipment development, device technology, mask technology and more

Being so new to Intel, I didn’t expect that Dr. Chandrasekaran would have much to contribute to the discussion, but I was wrong. He gave a very frank and honest assessment of the challenges he sees in his new role even after only being in it for a couple of months.

Naturally our main interest in the event was to see whether we could glean any insights as to why Mr. Gelsinger departed so suddenly, and of course, whether we could discern any changes in Intel’s IDM 2.0 strategy. With regard to the former, the closest we got was the following comment from Mr. Zinsner in response to a question about why the board was focusing more on the product group, and why wasn’t Pat Gelsinger the right person to do that:

Question: there's a question of who like if the product business is what's important to the board now I mean Pat knew the products better than anybody so so there is some confusion I think among some investors if that's the emphasis for the board that seemed like the perfect guy

Answer: Now I wouldn't read into the fact that the board wants to focus on that make sure we you know build out the products business and continue to execute there while you know standing up a foundry business as something related to Pat and the board deciding that now is the right time that was you know for personal reasons specific to Pat and the board.

The implication here is that Mr. Gelsinger’s departure was not related to his IDM 2.0 strategy per se, rather a personal disagreement between him and the board. As we go through the transcript of the call, it starts to become a little clearer what that disagreement might have been about. Let’s dig in….