By Adam Levine
Amid its search for a CEO to succeed Pat Gelsinger, the Intel board beefed up its engineering expertise with two new independent directors on Thursday.
Eric Meurice was the CEO of semiconductor equipment manufacturer ASML from 2004 to 2013. He holds degrees in mechanics, economics, and business administration. Steve Sanghi is the interim CEO and chairman of Microchip Technologies, a manufacturer of a variety of low-end chips. He holds degrees in electronics and computer engineering.
These additions to the board may indicate that Gelsinger, an engineer, may be replaced by another engineer. At a minimum, it appears to show the board felt that it didn't have enough technical expertise to make this important decision.
Intel didn't immediately respond to a request for comment.
Analyst CJ Muse of Cantor Fitzgerald was enthusiastic, calling Meurice and Sanghi "great additions." But he also struck a note of caution.
"The challenge however is this does not change the fact that the Board of Directors removed the biggest cheerleader and driver of the company's integrated manufacturing and product strategy without a succession plan, coupled with still clear challenges ahead across both manufacturing for internal products, securing high volume foundry customers, and a still very limited AI strategy," he wrote.
Intel was down more than 3% in midday trading on Thursday. The S&P 500 was marginally lower.
Write to Adam Levine at adam.levine@barrons.com
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(END) Dow Jones Newswires
December 05, 2024 12:16 ET (17:16 GMT)
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