Skip to Content

Intel’s New CEO Faces a Major Challenge

Intel’s new chief executive must reverse the last decade of declining market share.

Intel’s new CEO Brian M. Krzanich, elected by the board today to replace retiring chief executive Paul Otellini, is a longtime Intel insider whose vision must now guide the company through a time of tumult in the computing industry.

The world’s largest chipmaker faces challenges due to slumping PC sales, and has made only small inroads into the mobile computing world so far. The vast majority of smartphones and tablets use ARM-based designs, and as a result, Intel’s market share for all CPUs shipped has dropped dramatically over the last few years (see chart below).

Still, Intel is the only major company aside from Samsung that still manufactures the chips it sells, and earlier this year outgoing CEO Otellini called the company’s “leading-edge fabs” Intel’s greatest asset (see “Intel’s Mobile Chips Advance, But Are Still a Tough Sell”). The company’s estimated $13 billion in capital expenditures this year will go partly to completing a $5 billion factory in Arizona that will make its next generation of 14 nanometer chips (see “Intel Bets on Fabs, Again”). Manufacturing is where Krzanich shines. He started at Intel in 1982 as a process engineer and led the company’s manufacturing and supply chain operations before become chief operating officer. During his tenure, he oversaw important transitions in Intel’s manufacturing technology that have helped maintain Moore’s law, a prediction that the number of integrated circuits that can be fitted onto a chip will continue doubling every two years.

In choosing Krzanich, Intel is sticking with its tried-and-true strategies of the past. And he, more than anyone, knows that Intel must keep selling chips (or start taking orders from others) to justify its massive manufacturing investments. As he told MIT Technology Review in 2010, “The most expensive thing on the planet is a half-empty fab.” (see “The High Cost of Upholding Moore’s Law”.) 

Keep Reading

Most Popular

2021 tech fails concept
2021 tech fails concept

The worst technology of 2021

Face filters, billionaires in space, and home-buying algorithms that overpay all made our annual list of technology gone wrong.

conceptual illustration showing various women's faces being scanned
conceptual illustration showing various women's faces being scanned

A horrifying new AI app swaps women into porn videos with a click

Deepfake researchers have long feared the day this would arrive.

Death and Jeff Bezos
Death and Jeff Bezos

Meet Altos Labs, Silicon Valley’s latest wild bet on living forever

Funders of a deep-pocketed new "rejuvenation" startup are said to include Jeff Bezos and Yuri Milner.

surgery
surgery

A gene-edited pig’s heart has been transplanted into a human for the first time

The procedure is a one-off, and highly experimental, but the technique could help reduce transplant waiting lists in the future.

Stay connected

Illustration by Rose WongIllustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.