Gelsinger is referring to the recent introduction of Apple’s own M1 processor. This almost completely replaced the Intel processors that had previously been used in Apple’s Mac products for years. Intel has been struggling to switch to more modern manufacturing methods for years. While the US chip manufacturers still have problems with the mass production of processors in the 10 has nm process, the competition from Asia already produces masses of 5 nm chips and supplies them to Apple, for example. Even if there is still no more detailed information about the change in strategy of the group with Gelsinger at the top, some restructuring within the company can be expected in view of his clear words.

At the beginning of this year, it was urgent the largest shareholder Third Point already in an open letter the management to change course. There was also the possibility of outsourcing the production of advanced high-end chips to Asia. However, this is viewed very critically by the US government, as Intel also supplies the US Department of Defense with chips. Former CEO Bob Swan resigned from his post just the day before yesterday. It is not clear whether there is a connection between the resignation and Third Point’s demands.