Intel announces leadership changes to strengthen core business

SANTA CLARA - Intel Corporation (NASDAQ:INTC), the $107 billion semiconductor giant, announced several senior leadership appointments on Monday to support its strategy of strengthening core products, building a trusted foundry, and fostering an engineering-focused culture. The company, which generated over $53 billion in revenue last year, has seen its stock surge nearly 30% over the past year. According to InvestingPro data, Intel is currently trading near its Fair Value, suggesting the market is efficiently pricing its transformation efforts.

Kevork Kechichian has joined Intel as executive vice president and general manager of the Data Center Group. With over 30 years of industry experience, Kechichian previously served as executive vice president of engineering at Arm, where he managed the company’s transformation from IP licensing to delivering full-stack solutions. For detailed insights into Intel’s strategic positioning and comprehensive analysis, check out the in-depth Pro Research Report available exclusively on InvestingPro, covering what matters most for informed investment decisions.

Jim Johnson has been appointed senior vice president and general manager of Intel’s Client Computing Group after serving in the role on an interim basis. Johnson, a 40-year Intel veteran, has held various engineering and leadership positions across the company.

Intel is establishing a new Central Engineering Group led by Srinivasan Iyengar, who joined the company in June from Cadence Design Systems. In his expanded role as senior vice president and Fellow, Iyengar will lead horizontal engineering functions and build a new custom silicon business.

Naga Chandrasekaran, executive vice president and chief technology and operations officer of Intel Foundry, will expand his role to include Foundry Services, creating a more integrated structure spanning technology development, manufacturing and go-to-market.

The company also announced that Michelle Johnston Holthaus, chief executive of Intel Products, will depart after more than 30 years with the company. She will remain a strategic advisor over the coming months to ensure a smooth transition.

All the newly appointed leaders will report directly to CEO Lip-Bu Tan, according to the company’s press release statement.

In other recent news, Intel Corporation has been actively engaged in significant financial and strategic maneuvers. The company announced it has filed a prospectus supplement with the Securities and Exchange Commission to register the potential resale of a warrant and up to 673,839,150 shares of its common stock. This registration is part of an agreement with the United States Department of Commerce. Intel has also amended its Direct Funding Agreement with the Department of Commerce, resulting in a $5.7 billion disbursement under the CHIPS Act. This amendment lifted several previous obligations, including project milestone requirements and cash flow sharing conditions.

Additionally, Intel received $5.7 billion in grants from the CHIPS Act, which is being converted into the U.S. government’s equity stake in the company. Analyst Ming-Chi Kuo from TF International Securities noted that this $8.9 billion equity investment by the U.S. government raises Intel’s valuation floor but does not enhance its technological prospects. Meanwhile, Howard Lutnick defended the Intel deal, emphasizing its alignment with capitalist principles. These developments highlight Intel’s evolving relationship with the U.S. government and its strategic positioning in the semiconductor industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.