Intel CEO Pat Gelsinger speaks while holding a new chip, called Gaudi 3, during an event called AI Everywhere in New York, on Dec. 14, 2023. Gelsinger's retirement, announced the week of Dec. 2, 2024, was the latest shakeup for a company with a huge presence in Chandler.
On the heels of impactful financial news — much of it negative — Intel made the surprise announcement this week that CEO Pat Gelsinger has retired.
The semiconductor chipmaker announced Monday, in a news release, that its has named two senior leaders, David Zinsner and Michelle “M.J.” Johnston Holthaus, as interim co-chief executive officers while the board of directors conducts a search for a new CEO. Intel Foundry leadership structure remains unchanged.
The city of Chandler has deep ties to Intel, not all of which are imbedded in an infrastructure agreement. Its thousands of employees form the tax and largely the internationally diverse cultural base of the city.
In October, on the heels of negative numbers in a second-quarter report, Intel reported as many as 385 Chandler employees could be laid off.
On Nov. 20, Chandler Mayor Kevin Hartke and other officials attended a ribbon-cutting for a water reclamation plant that will, among other purposes, “support critical cooling operations at Intel’s expanded facilities,” according to a news release.
Hartke and other officials were also at a March event attended by President Biden, who announced an agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans.
That agreement was recently scaled back, as on Nov. 25, The Associated Press reported the Biden administration plans on reducing part of Intel’s $8.5 billion in federal funding for computer chip plants around the country, according to three people familiar with the grant who spoke on the condition of anonymity to discuss private conversations.
The changes to Intel’s funding are not related to the company’s financial record or milestones, the people familiar with the grant told The Associated Press.
In August, the chipmaker announced that it would cut about 15% of its workforce, or about 15,000 jobs, in an attempt to turn its business around to compete with more successful rivals like Nvidia and AMD.
A day later, Intel announced the U.S. Department of Commerce has awarded Intel “up to $7.86 billion” in direct funding through the U.S. CHIPS and Science Act to advance the company’s commercial semiconductor manufacturing and advanced packaging projects in Chandler and in New Mexico, Ohio and Oregon.
It’s unclear if President-elect Trump will be as supportive of onshoring production of semiconductors as Biden has been. There has been hurry-up attempts to secure and/or finalize funding for semiconductor plants in the Valley and other parts of the U.S., along with posturing in advance of Trump’s second term.
China announced Tuesday, the AP reported, it is banning exports to the U.S. of gallium, germanium, antimony and other key high-tech materials with potential military applications, as a general principle, lashing back at U.S. limits on semiconductor-related exports.
The Chinese Commerce Ministry announced the move after the Biden Administration recently expanded its list of Chinese companies subject to export controls on computer chip-making equipment, software and high-bandwidth memory chips, the AP reported. Such chips are needed for advanced applications.
Chandler Mayor Kevin Hartke poses with President Biden in March during an event to celebrate the president’s announcement of an agreement to provide Intel with up to $8.5 billion. After a rough third quarter and announced layoffs, Intel made the surprise announcement this week that CEO Pat Gelsinger has retired.
Courtesy of Kevin Hartke
The ratcheting up of trade restrictions comes as Trump has been threatening to sharply raise tariffs on imports from China and other countries after his Jan. 20 inauguration, potentially intensifying simmering tensions over trade and technology.
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Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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