Pat Gelsinger getting the enhanced retirement package (ERP), but that "E" should really be in gold lettering, considering the parachute benefits that come with being a CEO, including the ability to spread the payout across three tax years (with an 18-month deferment option). Unfortunately, Pat you made several risky decisions that didn’t pay off, and I’m left with serious concerns about how little you were able to change Intel’s culture during your time at the helm. Looking back, your decision to expand aggressively while the company was already behind, and with internal divisions opting for external solutions, was a major misstep. Fab expansion was particularly foolish, though I understand it was driven by the pursuit of government subsidies.
One of my biggest frustrations with Pat was his handling of Optane. Although he inherited the decision to move forward with Optane without Micron (after the July 2018 split), he immediately decided to shut it down and exit all forms of memory as soon as he took the reins. The manner in which he handled this revealed a lack of integrity, and the level of executive doublespeak during the shutdown was among the worst I’ve ever encountered. Optane was yet another money pit that I thought held promise. Add it to the list of projects, acquisitions, that never panned out, but it was truly painful to watch cutting-edge experimental wafers be scrapped without even gathering useful data.
For Intel Foundry to survive, hitting rock bottom appears necessary—if only it had happened sooner. Intel Foundry needs to focus on becoming lean and efficient before it can think about expansion. Achieving true node superiority would be great, but what’s more important is learning how to win customers by being customer-centric. That starts with winning over internal customers. Once that’s achieved, it will be much easier to win external customers and capture market share in the foundry business. Until then, we’re essentially a packaging foundry, weighed down by depreciating assets. Hard days are ahead...
Intel Products, good luck. You needed a node edge to beat your competitors before, but now that you're on equal footing, you'll have to prove that your solutions are truly superior. The days of relying on process advantage alone are over. Now it's all about innovation, customer focus, and execution. The pressure is on to deliver, and the competition is stout.