Still, he and Intel executive Naga Chandrasekaran offered a vision for the company that included a more conservative approach to capital spending — something that had been a concern for investors during Gelsinger’s tenure.
“There’s a significant cultural change that has to happen,” said Chandrasekaran, a Micron Technology veteran who oversees Intel’s manufacturing operations and supply chain.
The company previously made as many chips as were needed to satisfy demand, an approach Chandrasekaran called “no wafer left behind”.
Intel now needs to embrace the attitude of “no capital left behind”, he said.
See also: Intel CEO Gelsinger leaves as chipmaker's turnaround flounders
Intel announced Gelsinger’s retirement on Monday, less than four years after he took the job. His departure came after the board gave him the option to retire or be removed, Bloomberg reported earlier, citing people familiar with the matter.
Last month, the company said that sales would be US$13.3 billion to US$14.3 billion in the current quarter, compared with an average analyst estimate at the time of US$13.6 billion.
At the UBS event, the executives said that Intel would continue Gelsinger’s strategy of turning the company into a “world-class” foundry — a maker of chips for outside clients. Intel also has no concerns about its Chips Act grant, Zinsner said.
See also: Morningstar keeps US$21 target price on Intel amid CEO exit
The Santa Clara, California-based company is set to get about US$7.9 billion in awards as part of a federal program meant to revitalise the domestic semiconductor industry.
“It’s an ironclad agreement,” Zinsner said. He also noted that much of the Chips Act incentives will come in the form of tax credits, rather than grants, and the incoming Trump administration “values manufacturing”.
