The Intel CEO, Pat Gelsinger, has retired, with David Zinsner and Michelle Johnston Holthaus named as interim co-CEOs. Though demand for semiconductor chips has never been higher or more lucrative, Intel has struggled to match the success of its rivals.

Gelsinger, whose career has spanned more than 40 years, also stepped down from the company’s board. He started at Intel in 1979 at Intel and was its first chief technology officer. He returned to Intel as chief executive in 2021. Intel said on Monday that it would conduct a search for a new CEO.

Last week, it was revealed that the Biden administration planned on reducing part of Intel’s $8.5bn in federal funding for computer chip plants around the country, according to three people familiar with the grant who spoke on the condition of anonymity to discuss private conversations.

The reduction is largely a byproduct of the $3bn that Intel is also receiving to provide computer chips to the military. Joe Biden announced the agreement to provide Intel with up to $8.5bn in direct funding and $11bn in loans in March.

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The changes to Intel’s funding are not related to the company’s financial record or milestones, the people familiar with the grant said. In August, the chipmaker announced that it would cut 15% of its workforce – about 15,000 jobs – in an attempt to turn its business around to compete with more successful rivals like Nvidia and AMD. Unlike some of its rivals, Intel manufactures chips in addition to designing them.

Zinsner is executive vice-president and chief financial officer at Intel. Holthaus was appointed to the newly created position of CEO of Intel Products, which includes the client computing group, data center and AI group, and network and Edge group.

Frank Yeary, independent chair of Intel’s board, will become interim executive chair.

“Pat spent his formative years at Intel, then returned at a critical time for the company in 2021,” Yeary said in a statement. “As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company.”