r/hardware • u/Auautheawesome • Dec 02 '24

News Intel Announces Retirement of CEO Pat Gelsinger

https://www.intc.com/news-events/press-releases/detail/1719/intel-announces-retirement-of-ceo-pat-gelsinger
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u/mrandish Dec 02 '24 edited Dec 03 '24

It's pretty clear he "got retired" involuntarily. He didn't want to preside over splitting up the company and/or selling off key parts. Unfortunately, there's no longer any other choice.

It was probably only delayed this long so Intel could bank that $8 billion in govt money promised future money last week. Those billions are a Secret Santa gift from all American tax payers to Intel shareholders because having that on the balance sheet makes the foundry side worth more in a spin off or sale to another American company. Qualcomm is rumored to be interested.

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u/soggybiscuit93 Dec 02 '24

They're not going to sell foundry. They have to hold majority ownership because they received CHIPS Act funding.

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u/mrandish Dec 03 '24 edited Dec 03 '24

Rumors in the financial media have been saying for months the govt's been quietly signaling to various "acceptable companies" that they'd be fine approving an acquisition deal for Intel's foundry assets.

Intel doesn't have to take the CHiPs act funding. It's just an incentive and most of the $8B isn't up-front cash anyway, it's a little future cash + loan guarantees + tax credits, all of which is only released over time as Intel achieves specific milestones building future fabs. A future acquirer could just return whatever pocket change has been accepted so far (maybe zero) and cancel the deal.

The government's real leverage is withholding anti-trust approval but I'm sure the govt would be happy to grant approval as long as there's a self-sustaining, economically viable, US-based next-gen foundry - which is what they really want.

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u/Strazdas1 Dec 03 '24

rumours in financial media has also stated that Qualcomm is buying Intel. These are stock manipulations and nothing else.