Intel's New CEO Gives Its Turnaround a Fighting Chance

Intel Corp. now has a fighting chance. After a series of stumbles in recent years, the storied chip giant has found a new leader with the expertise it needs to spark a turnaround. Early Wednesday, the company said its board had appointed Pat Gelsinger, the current head of VMware Inc., as its next chief executive officer, effective Feb. 15.

The leadership change comes at a critical time. Intel has lagged behind its chief rivals on the back of repeated delays in moving to newer semiconductor production techniques, allowing Asian manufacturers such as Taiwan Semiconductor Manufacturing Co. to surpass it in its ability to make higher-performing chips. Intel’s troubles have spurred activist investor Third Point LLC’s Dan Loeb to get involved. Last month, in a letter to Intel Chairman Omar Ishrak, Loeb criticized the performance of the company’s management team and said attracting new leaders with engineering talent was its “most urgent task.”