Intel CEO Bob Swan to step down in February

Intel CEO Bob Swan is set to step down effective Feb. 15, CNBC’s David Faber reported Wednesday.

VMWare CEO Pat Gelsinger will take over the position, sources told Faber.

Intel’s stock was up about 13% in premarket trading following the news. VMWare’s stock was down nearly 5%.

Swan was named CEO in January 2019 after serving as interim CEO for seven months.

During Swan’s tenure, Intel has suffered blows from competitors. Over the summer, Intel reported that its latest generation chips would be delayed while AMD’s were already shipping inside laptops. Apple announced in the fall that it would use its own proprietary chips in its Mac computers, breaking a 15-year partnership with Intel for its chip supplies.

In December, Third Point, a hedge fund led by Dan Loeb, urged Intel’s board to explore “strategic alternatives.” That came after Intel lost market share to competitors AMD, Samsung and TSMC.

Third Point urged Intel to divest from “failed acquisitions” and criticized Intel for its “loss of manufacturing leadership.” The firm recently took a roughly $1 billion stake in Intel, according to Reuters.

Critics have pointed to the fact that Intel’s chief executive did not come from a technical background, having previously served as CFO. With Gelsinger, that will no longer be the case. Gelsinger previously worked at Intel, eventually becoming its first Chief Technology Officer.

Intel is expected to make the announcement official later on Wednesday.

This story is developing. Check back for updates.

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