Intel is considering hiring an external CEO and has enlisted headhunters to help in the search.

• The company is considering hiring an external CEO, a rare move, following the removal of Pat Gelsinger.
• Spencer Stuart, an executive search firm, has been hired by Intel to conduct the recruitment process.
• Recently departed director Lip-Bu Tan has been approached by the company's board about the possibility of becoming the new CEO.

The company is reportedly looking for an external candidate to replace Pat Gelsinger, who was ousted as CEO, and has enlisted Spencer Stuart to help find potential successors, sources say.

One source reported that Intel's board has reached out to former director Lip-Bu Tan to gauge his interest in the CEO position at the struggling chipmaker.

Intel has traditionally promoted from within, but an outside CEO would break this tradition. Gelsinger, who was hired from VMware in 2021, had spent decades at the company in increasing seniority. Gelsinger's predecessor Bob Swan was Intel's first true outside hire, but he was considered a stop-gap CEO and was removed amid pressure from activist investor Third Point.

According to sources, Matt Murphy, the CEO of Marvell, was among the candidates being considered for the shortlist.

Intel representatives did not respond to multiple requests for comment, and Tan, who was first reported by Reuters to be involved in the replacement process, could not be reached for comment.

Intel has announced that Frank Yeary and a board-level committee are currently overseeing the search for a new CEO, and the process is still in its early stages.

Intel's board may choose to promote from within, with potential candidates being CFO David Zinsner or Intel products chief MJ Holthaus, who are currently serving as interim co-CEOs.

Over the weekend, Intel abruptly removed CEO Pat Gelsinger from his position, as sources close to the matter revealed that the board had lost confidence in his ability to lead the company through a successful turnaround, despite its lagging performance compared to Nvidia for over a year.

Intel disclosed in a regulatory filing that Gelsinger will receive approximately $10 million in severance.

This is a developing story. Please check back for updates.