Intel CEO Patrick Gelsinger has stepped down after less than four years, as the company struggles to compete with industry leaders like Nvidia and TSMC. According to a recent report by Reuters, the decision followed a board meeting where directors expressed concerns about the slow progress of Gelsinger's turnaround plan.

Gelsinger joined Intel in 2021 with ambitious goals to restore its lead in chip manufacturing and establish a strong presence in AI technology. However, Intel failed to deliver on key promises, lost contracts, and struggled to compete in the fast-moving AI chip market, states the Reuters report. According to investment advisory firm Carson Group, Intel's stock dropped by over 60% during Gelsinger's tenure, and the company's market value fell far behind competitors.

Gelsinger's strategy included a $20 billion investment in new factories and plans to make Intel a major chip manufacturer for other companies. While some deals were secured, they weren't enough to make the factories profitable, explains the report. At the same time, rivals like Nvidia thrived, dominating the AI chip market and reaching record valuations.

Intel has appointed CFO David Zinsner and executive Michelle Johnston Holthaus as interim co-CEOs while a search for a permanent replacement is underway. The company recently received $7.86 billion in US subsidies to support its recovery efforts, and the board emphasised its commitment to restoring Intel's competitiveness.

This leadership change comes as Intel faces increasing pressure to regain its footing in the global chip market, where innovation and speed are essential for success.