Arm CEO Rene Haas on former Intel CEO Pat Gelsinger: “Pat had a strategy that was…” – Times of India

Arm CEO Rene Haas has shared his thoughts on the challenges facing Intel, the iconic chipmaker that has been struggling in recent years. Haas expressed a sense of sadness at seeing Intel‘s struggles, acknowledging the company’s legacy as an “innovation powerhouse.” He also praised Pat Gelsinger, who recently quit as company CEO but questioned his strategy.
According to The Verge, when asked about what should happen to Intel, Haas said that it’s “sad to see what’s happening from the perspective of Intel as an icon.”
“Intel is an innovation powerhouse, whether it’s around computer architecture, fabrication technology, PC platforms, or servers.. So to see the troubles it’s going through is a little sad. But at the same time, you have to innovate in our industry,” he said.

Haas on Intel’s strategy

Talking about Intel’s working, he said that Intel’s biggest challenge lies in deciding whether to embrace vertical integration, where it controls the entire chipmaking process from design to manufacturing, or to adopt a fabless model, focusing on design and outsourcing manufacturing.
“I think that is the fork in the road that it’s faced for the last decade, to be honest with you. And [former Intel CEO] Pat [Gelsinger] had a strategy that was very clear that vertical was the way to win,” Haas said.
“In my opinion, when he took that strategy on in 2021, that was not a three-year strategy. That’s a 5-10-year strategy,” he added.
However, Haas emphasized the importance of continuous innovation in the tech industry, noting that many once-great companies have failed to adapt and ultimately faded away.
While Haas expressed a personal bias towards vertical integration.
“So now that he’s gone and a new CEO will be brought in, that’s the decision that has to be made. My personal bias is that vertical integration can be a pretty powerful thing, and if they can get that right, they would be in an amazing position. But the cost associated with it is so high that it may be too big of a hill to climb,” he added.