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With Intel rapidly falling behind some of the technical advances made by competitors including Nvidia and AMD, coupled with critical delays in delivery of key products, Intel has decided to replace CEO Bob Swan with VMware CEO Pat Gelsinger, effective February 15.
Swan, a former CFO who took over as interim CEO in January 2019, was named CEO seven months later. He has been criticized by some industry observers for not having a deep technical background. Gelsinger, an engineer and holder of eight technology patents, is a former Intel executive who figures to offer the company more experienced technical leadership.
Intel failed to bring its 7-nanometer chip to market due to issues involving its manufacturing process -- a technology AMD delivered in July 2019 and Nvidia also delivered in November of that year. While analysts are hardly calling for the demise of Intel, they say delays in delivery of key offerings and poor management over the past few years have put the company at a significant competitive disadvantage.
Not only have both AMD and Nvidia delivered superior technology over the past couple of years, each company has made strategically important acquisitions to strengthen their respective competitive positions.
Late last year, AMD acquired Xilinx in a $35 billion stock-based transaction that brings both CPUs and GPU technologies under one roof and Nvidia purchased ARM Technologies, a top-tier chipmaker whose offerings are used in systems ranging from hand-held devices to supercomputers.
Intel and VMware could not be reached for comment.