uploads/2019/01/Chipmakers.jpg

Why Intel’s CEO Search Is Taking So Long

By

Updated

Outside candidate and diversity considerations

Intel (INTC) has been searching for a new CEO for more than six months. Brian Krzanich was ousted as Intel CEO in June, and Intel CFO Bob Swan has been acting as CEO since. As Bloomberg reported, issues ranging from hiring an outside candidate to diversity considerations have contributed to Intel’s long search for a new CEO. Intel has traditionally groomed its leaders internally, but the company has considered hiring an outsider this time around. Intel chair Andy Bryant told some employees that the company may settle for a non-traditional candidate, meaning an outsider, for the CEO position, according to Bloomberg.

Article continues below advertisement

Regaining manufacturing lead

Intel wants to hire a CEO who can help it regain the lead in chip manufacturing process technology. At the same time, Intel wants to diversify its business outside the personal computer and server markets, and it wants a leader who can drive such diversification efforts. Intel is hunting for opportunities in the autonomous driving space, where it has won contracts to supply Baidu (BIDU) with technology for its self-driving program, according to a report by the Asian Nikkei Review.

Intel’s revenue rose nearly 19%

Intel generated $19.2 billion in revenue in the third quarter of 2018, its most recent reported period. Its revenue rose 18.7% YoY fueled by growth in the company’s data center group. NXP Semiconductors (NXPI) and Advanced Micro Devices (AMD) grew their revenues by 2.4% and 4.4% YoY, respectively, in the third quarter. Revenue declined 1.7% YoY for Qualcomm (QCOM) in the third quarter.

Advertisement

More From Market Realist